Altenesol Colombia Completes Nataly I LNG FEED Work and Land Purchase

Altenesol Colombia Completes Nataly I LNG FEED Work and Land Purchase

IAHL Corporation announced that Altenesol LLC and Altenesol Colombia S.A.S. have completed both the front end engineering design study and finalized the acquisition of the land upon which the Nataly I LNG plant will be constructed.

The FEED study brings all aspects of the logistical, design, material, permitting and contingencies and cost estimates under a 3 percent margin. The final numbers from the FEED will give firmer insights for the construction’s funding requirements. Altenesol Colombia S.A.S. has also completed the soil analysis, topographical, LNG Plant placement and road access studies.

FEED Study and EPC Contractor Update

The FEED study was finalized in December and has resulted in a lower CAPEX than expected to complete Nataly I LNG Plant. The company will announce the winner of the engineering, procurement and construction (EPC) contract in January of 2014.

There has been a high level of interest for LNG from a number of entities in Colombia and other countries. A larger plant has also been engineered to handle those higher LNG requirements in the event that more off-takers exceed the current 180,000 GPD projections. Therefore, the actual LNG plant size will be directly subject to off-taker contractual agreements that are currently in negotiations.

BTG Pactual Colombia and MountainView Capital Corporation of Canada have played a key role in bringing the project to its current state by providing both commercial and financial support. Altenesol Colombia S.A.S. has formed an alliance among companies which are or will become involved in the LNG sector in Colombia to expand the market and work together to bring LNG to both the corporate and private sectors in Latin America.

The following is a list of the companies already signed into the alliance:

  • KENWORTH DE LA MONTAÑA – Authorized PACCAR dealer in Colombia which is instrumental in future conversions of existing trucks in Colombia.
  • RENTING Colombia S.A. -a subsidiary of Bancolombia group responsible for the leasing of the complete logistical service for companies throughout the country, a turnkey solution (leasing, maintainability, etc.) of their fleets.
  • GECOLSA – Authorized Caterpillar dealer in Colombia. They have the service contract with the mining companies utilizing all of the Caterpillar technology. They will be responsible for installing and maintaining the LNG system for all of the converted equipment in the Gran Mining industry in Colombia.

The following companies are part of the Alliance in a supporting role:

  • Westport HD – One of the largest producers of LNG conversion kits that go on to all new trucks utilizing the Cummins engines.
  • Cummins Inc. – Engine manufacturer with over 85% on the market in Colombia.
  •  BTG Pactual and MountainView Capital Corporation – Agents supporting this technology in Colombia and sourcing the capital requirements.
  • Canacol Energy LTD – Natural Gas supplier for the LNG Plants.

“This is a major milestone for our company, our shareholders and the people of Colombia. We are in final negotiations to close on long term contracts which were waiting on completion of the FEED study to move forward and we will release the details when we enter into a definitive agreement with such parties.

“We will be adding details on each of the companies in the alliance on our website as well as a section dedicated to the construction process so our shareholders can see active progress. We have laid a very solid foundation which has taken extra time and work on the front end but will allow us to fast track both additional plants and revenue streams from all aspects of developing this new market. This will directly impact and quicken our goal of moving to a major exchange.” stated Nelson De La Nuez, CEO IAHL/Altenesol.

LNG World News Staff, December 20, 2013; Image: Altenesol

Related news

List of related news articles