Frontera Energy plans to begin transporting liquids through a bidirectional flowline in northern Colombia later this year, marking a step forward in its infrastructure expansion plans.
The 6.8km, 18-inch line will connect the Reficar refinery in Cartagena to the company’s Puerto Bahia terminal on Colombia’s Caribbean coast.
“With construction effectively complete, the company aims to transport the first volume in the third quarter of 2025,” CEO Orlando Cabrales told investors in a quarterly earnings call.
The project is part of Frontera’s broader strategy to boost returns from its infrastructure segment, which delivered US$28.6mn in adjusted Ebitda in the first quarter and includes a stake in the Oleoducto de los Llanos Orientales (ODL) pipeline.
Other growth opportunities include a possible LNG import project on Colombia’s Caribbean coast as the company seeks to capitalize on new rules designed to attract regasification investments.
“Frontera will remain open to and consider all opportunities to enhance shareholder value, including a potential future [business] separation and other strategic transactions involving the infrastructure business, which could include a potential LNG import facility in Puerto Bahia,” Cabrales said, without providing details.
To help fund its expansion works, the company said it signed a commitment letter for US$220mn in non-recourse financing backed by its indirect interest in ODL.
Puerto Bahía will be excluded from the security package tied to the loan, a move Frontera said would give the port greater flexibility to pursue independent financing for new growth initiatives.
Frontera maintained its 2025 investment budget of US$200-245mn and a production target of 41,000-43,000boe/d.
“The company’s 2025 drilling campaign continues to progress well and we expect improved production and profitability throughout the rest of the year,” Cabrales added.