Gas Seminar in Maputo, Mozambique

x  IGU Secretary General

Pål Rasmussen meeting Dr Peggy Oti-Boateng, Senior Programme Specialist for Science and Technology and Coordinator for ANSTI, in the UNESCO MSRO for Southern Africa; and ( right), Paulino Gregório, Vice-President for Exploration & Production, ENH at the seminar.

The International Gas Union, in collaboration with the World Bank Group, and supported by SE4ALL and the Government of Mozambique, organized a regional Gas Competence Seminar in the city of Maputo, Mozambique from September 22-23, 2015. The seminar attracted governmental bodies, the gas industry and representatives from international organizations not only from Mozambique but from the whole southern African region.

The event provided an opportunity for the delegates to share knowledge, raise awareness and discuss strategic options that natural gas offers for sustainable access to energy and social and economic development. The by-invitation-only event attracted more than 100 delegates, and speakers included experts from the energy industry; both local and global companies; governmental officers; international organizations including SE4ALL, UNESCO and

the African Development Bank; as well as other invited participants.

Many of the participants and speakers had long experience from other nations and regions that have gone through similar gas industry developments. The presentations and discussions pointed to the tremendous opportunities, but also challenges that exist in this geographical area.

The discussions also raised the concern that the speed at which frameworks, regulations, and business models are developing can have consequences for the region’s development outcome. While some think the implementation is going far too slow, others are warning that implementation is too rapid. It is therefore important to ensure that great care is taken and respect shown to the regional particularities.

Another concern raised was the global economic climate, since development of the gas

industry will require massive investment and the current environment makes them challenging to finance. Recommendations were given to look for new unconventional funding models and possibilities of funding in smaller increments.

The topics discussed at the seminar were the following: ◆

Regulatory and institutional frameworks;

Large scale industrial development;

Gas and power development;

Project financing and structuring;

Gas market development;

Sustainable energy and social development; and

Long-term competence building – Next steps.

The discussions pointed to the tremendous opportunities but also challenges that exist, and can be summarized as follows:

Opportunities

◆ ◆

Gas for the production of electricity;

Industrial development with gas as a feedstock to local industries such as fertilizers; and Improvement in the environment of cities in the region.

Challenges

◆

Growing concern over lack of competence as it relates to developing the gas industry;

Lack of training and educational institutions that focus on gas industry aspects; and

The need to establish long-term business models for both competence and infrastructure development.

The IGU and the World Bank worked closely on the seminar and the event can be seen as a very successful initiative resulting from the partnership that IGU and the World Bank has agreed to through the Memorandum of Understanding signed in 2014.

x  The seminar brought

together invited experts from around the globe and delegates from across southern Africa to discuss the options that natural gas provides in the region.

Promigas

Promigas is one of the oldest private companies in the natural gas sector in Latin America with 40 years experience providing mass access to natural gas in Colombia. Since its beginnings it has played an active and important role in this process.

As a holding, Promigas develops energy markets in Colombia and Latin America focusing on the following transmission and distribution businesses: natural gas transmission; integrated solutions for the hydrocarbon industry and power generation; natural gas and electrical power distribution. Recently, it has started in the liquefied natural gas business with the construction of the first LNG regasification unit in Cartagena, Colombia. The number of subsidiaries that compose our strategic business units is 20.

We transport 50% of the natural gas in Colombia through a 2,900 km pipeline system and we provide services for hydrocarbon producers and large industries which include the compression and dehydration of natural gas, the construction of gas pipelines, interconnection lines, and energy solutions such as generation, cogeneration and self-generation.

In Colombia, we supply natural gas to more than 2.8 million users, 40% of the national market, which represents approximately 10 million people. In Peru we service more than 163,000 users.

We also operate and maintain approximately 24,000 km of electrical power distribution networks, reaching more than 321,000 users in 38 communities in the department of Cauca, south of Colombia.

We have AAA ratings for debt issues in Colombia and BBBinternationally for IDR issues in foreign and local currency and are certified ISO 9001 for quality, OHSAS 18 001 in Occupational Health Safety and ISO 14 001 in environmental systems.

For over 24 years we have participated in the natural gas for vehicles (NGV) business, which we pioneered and continue, searching for new growth opportunities.

Transmission business unit

Distribution businesses Natural gas transmission

Integrated solutions for the hydrocarbon industry and electrical power generation

Natural gas distribution

Electrical power distribution Promigas Promioriente Transmetano Transoccidente

Promisol Enercolsa Zonagen Enerfranca SPEC- E2 Energía Eficiente

Surtigas Gases de Occidente Gases del Caribe Efigas Gases de La Guajira Cálidda (Perú) Gases del Pacífico (Perú) Orión

Compañía Energética de Occidente

Non-banking finance Brilla Pipeline network: 2900 km Capacity: 836 MCFD Employees: 435

Dehydration capacity: over 520 MCFD Installed compression capacity: 13 000 hp Cogeneration plants: capacity in excess of 60 MW

Users connected: 3.2 million Gas sales: 8,459 Mm 3 Employees: 2,149

Clients: 321,327 Energy demand: 517 GWh Employees: 273

Loans awarded: $494,233,550 Number of users benefited: 1,300,265 Loan portfolio: $305,642