By Robb M. Stewart
Frontera Energy has agreed on a services and a floating platform for its liquefied natural gas terminal in Colombia as the Canadian company repositions following its $500 million exit from its oil-and-gas exploration and production assets in Colombia.
Frontera said Monday its Sociedad Portuaria Puerto Bahia subsidiary has signed a take-or-pay agreement to provide integrated logistics and LNG regasification services in Cartagena to petroleum company Empresa Colombiana de Petroleo.
The pact will be developed in two phases, with initial regasification of 126 million cubic feet a day starting in 2027, increasing to 300 million after the first two years, Frontera said.
So that it can fulfill the contract and meet additional demand needs, Puerto Bahia signed a contract with a U.S. based company to lease a floating storage and regasification unit. The unit provides Puerto Bahía with LNG regasification capacity of 500 million cubic feet a day beginning in 2027 for an initial term of seven years, extendable for an additional five to eight years, Frontera said.
The agreement with Ecopetrol represents a committed offtake volume that underwrites the floating storage and regasification unit lease contract, the company said.
Frontera on Monday said it had closed the deal to sell its Colombian exploration and production assets, a reverse osmosis water treatment facility and a palm oil plantation to independent oil-and-gas company Parex for $750 million, including $225 million in assumed debt.
The company said it will retain $64 million of cash on its balance sheet, including $25 million to reduce debt and other liabilities and $39 million for growth projects at Puerto Bahia. Some $430 million will be returned to its shareholders, it said.
Orlando Cabrales Segovia will remain Frontera's chief executive.
Andres Sarmiento, who most recently served as vice president of corporate sustainability and people, has been appointed chief financial officer and Renata Campagnaro will transition to the role of vice president of commercial operations and projects. Rene Burgos Diaz and Ivan Arevalo are leaving their positions as chief financial officer and VP of operations, respectively, following the closing of the transaction with Parex, Frontera said.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
June 01, 2026 10:24 ET (14:24 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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