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Industry Research Report on the Energy in Colombia.

Value Chain outline

The energy industry in Colombia encompasses a complex value chain, primarily centered around hydrocarbons (oil and natural gas) and electricity. This value chain can be broadly segmented into upstream, midstream, and downstream activities for hydrocarbons, and generation, transmission, distribution, and commercialization for electricity. The value chain involves the process from the initial discovery and extraction of resources to their processing, transportation, and final delivery to consumers.

Identification and description of each step in the value chain

The main steps in the energy value chain in Colombia include:

  1. Exploration and Production (E&P): This is the initial phase involving the search for potential energy resources (like crude oil and natural gas) and their extraction from the earth. For electricity, this phase relates to securing primary energy sources (water for hydro, fuel for thermal, land for solar/wind).
  2. Midstream (Hydrocarbons) / Transmission (Electricity): This step involves the transportation of raw or generated energy resources. For hydrocarbons, it's moving crude oil, natural gas, and refined products via pipelines, tankers, or other means. For electricity, it's transporting high-voltage power from generation plants to distribution networks.
  3. Downstream (Hydrocarbons) / Generation (Electricity): This stage processes the raw energy resources. For hydrocarbons, it includes refining crude oil into fuels and other products, or processing natural gas. For electricity, it's the actual production of electrical energy using various sources (hydro, thermal, solar, wind, etc.).
  4. Distribution and Commercialization: This is the final stage where energy is delivered to end consumers (homes, businesses, industry). Distribution involves the local networks (pipelines, power lines) that carry the energy from transmission points. Commercialization involves the sale, billing, and customer service aspects.

Identification and description of segments for each step of the value chain.

  • Exploration and Production (E&P):
    • Segments: Exploration (identifying potential reserves through geological surveys, seismic testing) and Production (drilling wells, extracting oil and gas).
    • Main activities: Geological and geophysical studies, exploratory drilling, well completion, extraction of hydrocarbons, primary processing at the wellhead.
  • Midstream (Hydrocarbons) / Transmission (Electricity):
    • Segments: Transportation (pipeline operations, tanker logistics, infrastructure maintenance), Storage (tank farms, natural gas storage facilities), Processing (basic processing to prepare resources for refining or transmission, such as gas conditioning). For electricity, it's specifically High-Voltage Transmission.
    • Main activities: Operating and maintaining pipeline networks, managing storage facilities, preliminary processing of hydrocarbons, operating and maintaining high-voltage transmission lines, managing grid stability.
  • Downstream (Hydrocarbons) / Generation (Electricity):
    • Segments: Refining (converting crude oil into products like gasoline, diesel, jet fuel), Petrochemicals (producing chemicals from hydrocarbons), Gas Processing (purifying natural gas), Power Generation (producing electricity from various sources - hydro, thermal, solar, wind).
    • Main activities: Operating refineries, chemical plants, and gas processing facilities; operating power plants (managing fuel supply, maintenance, dispatching electricity).
  • Distribution and Commercialization:
    • Segments: Distribution (managing the local networks of pipelines for gas or low/medium voltage lines for electricity), Commercialization (selling energy to end-users, billing, customer service, managing energy contracts).
    • Main activities: Operating and maintaining local distribution networks, connecting new customers, reading meters, billing, customer support, managing energy sales and purchases.

List of types of players in each segment

  • Exploration and Production (E&P): National oil companies (NOCs), International oil companies (IOCs), Independent E&P companies.
  • Midstream (Hydrocarbons) / Transmission (Electricity): Pipeline operators, Storage companies, Energy infrastructure companies, National Transmission System Operator (TSO).
  • Downstream (Hydrocarbons) / Generation (Electricity): Refining companies, Petrochemical companies, Gas processing companies, Power generation companies (utility-scale generators - hydro, thermal, solar, wind), Independent Power Producers (IPPs).
  • Distribution and Commercialization: Natural gas distribution companies, Electricity distribution companies, Energy commercialization companies (retail energy providers).

Detailed description of the main activities within each segment.

As described above, the main activities range from the highly technical and capital-intensive processes of geological surveying, drilling, and infrastructure construction (E&P, Midstream/Transmission) to the complex operational tasks of managing processing plants and power stations (Downstream/Generation) and finally, the logistical and customer-focused operations of delivering energy and managing sales (Distribution/Commercialization).

List examples of key players with detailed profiles.

Key players in the Colombian energy industry, based on the provided context, include:

  • Ecopetrol S.A.: Colombia's state-controlled integrated oil and gas company. It is the largest petroleum company in Colombia, involved in exploration, production, transportation, refining, and commercialization of crude oil, natural gas, and petrochemical products. Ecopetrol is majority state-owned and is the leading oil and gas producer and transporter in the country. The company is increasingly focused on energy transition initiatives, including green hydrogen and carbon capture.
  • Grupo Empresarial EPM: A public utilities group involved in energy generation, transmission, distribution, and commercialization. EPM is a major partner in large hydroelectric projects like Hidroituango and is considered the largest company in electricity distribution in Colombia.
  • Organización Terpel S.A.: A leading company in the commercialization and distribution of fuels and related products, including operating fuel service stations and engaging in natural gas distribution.
  • Celsia S.A. E.S.P.: An energy company part of Grupo Argos, focused on generation, transmission, and commercialization with a diverse portfolio including hydro, thermal, solar, and wind assets. Celsia is actively investing in renewable energy.
  • Air-e: An energy distribution and commercialization company operating in the Caribbean region.
  • Afinia (Caribemar): Another energy distribution and commercialization company in the Caribbean region, part of Grupo Empresarial EPM.
  • Vanti S.A. E.S.P.: A key player in natural gas distribution and commercialization.
  • Biomax Biocombustibles S.A.: A distributor of liquid fuels.
  • ISA (Interconexión Eléctrica S.A. E.S.P.): A major energy transmission company involved in high-voltage electric power transmission.
  • Tebsa (Termobarranquilla S.A. E.S.P.): Operates a significant thermal power plant crucial for reliable energy supply.

Show estimates of volumes and sizes of each step in the value chain.

Estimates of volumes and sizes for each step, based on the provided

  • Exploration and Production (E&P):
    • Ecopetrol's total production was 746 kboed (thousand barrels of oil equivalent per day) in 2024.
    • Ecopetrol's crude oil production was 461,000 b/d (barrels per day) in October 2024, representing 60% of national output.
    • Ecopetrol's natural gas production was 974 Mf3/d (million cubic feet per day) in October 2024, representing 70% of national output.
  • Midstream (Hydrocarbons) / Transmission (Electricity):
    • Ecopetrol transported 1,113 thousand bpd (barrels per day) in 2023.
    • Specific volumes for electricity transmission by ISA are not available in the provided sources.
  • Downstream (Hydrocarbons) / Generation (Electricity):
    • Specific volumes for refining or petrochemicals by Ecopetrol are not available.
    • Celsia's installed generation capacity included a significant portion of hydraulic power (95% in 2022).
    • Specific generation volumes for Celsia, Tebsa, or EPM's generation arm are not explicitly provided.
  • Distribution and Commercialization:
    • EPM's Energy Distribution and Commercialization segment had revenue of COP 26 trillion in 2023.
    • Specific volumes (e.g., GWh distributed, m³ gas distributed) for distribution and commercialization companies like EPM, Air-e, Afinia, Vanti, or Biomax are not available in the provided sources, though their revenues indicate significant market size (Air-e: COP 6.1 trillion 2023; Afinia: COP 5.9 trillion 2023; Vanti: COP 3.8 trillion 2023; Biomax: COP 3.7 trillion 2023).

Value Chain Summary Table

Value Chain Step Segments Types of Players Main Activities Examples of Key Players Estimates of Volumes/Sizes
Exploration & Production Exploration, Production NOCs, IOCs, Independent E&P companies Geological surveys, exploratory drilling, well completion, extraction of hydrocarbons, primary processing. Ecopetrol Ecopetrol: 746 kboed (2024 total prod), 461 k b/d crude (Oct 2024, 60% national), 974 Mf3/d gas (Oct 2024, 70% national).
Midstream (Hydrocarbons) Transportation, Storage, Processing Pipeline operators, Storage companies, Energy infrastructure companies Operating and maintaining pipelines, managing storage, preliminary hydrocarbon processing. Ecopetrol, Organización Terpel Ecopetrol: Transported 1,113 thousand bpd (2023). Volumes for Terpel's midstream activities not provided.
Transmission (Electricity) High-Voltage Transmission National Transmission System Operator (TSO), Energy infrastructure companies Operating and maintaining high-voltage lines, managing grid stability. ISA Specific volumes (GWh transmitted) not provided.
Downstream (Hydrocarbons) Refining, Petrochemicals, Gas Processing Refining companies, Petrochemical companies, Gas processing companies Operating refineries, chemical plants, gas processing facilities. Ecopetrol Specific volumes for refining or processing not provided.
Generation (Electricity) Power Generation (Hydro, Thermal, Solar, Wind) Power generation companies (utility-scale), IPPs Operating power plants, managing fuel supply, maintenance, dispatching electricity. Celsia, Grupo Empresarial EPM, Tebsa Celsia: Significant hydraulic capacity (95% in 2022), acquired 675 MW solar/wind projects. Specific generation volumes for other players not provided.
Distribution (Energy) Natural Gas Distribution, Electricity Distribution Natural gas distribution companies, Electricity distribution companies Operating and maintaining local distribution networks, connecting customers, meter reading. Grupo Empresarial EPM, Air-e, Afinia, Vanti Specific volumes (GWh/m³ distributed) not provided. Revenues indicate size (EPM Dist/Comm: COP 26T 2023; Air-e: COP 6.1T 2023; Afinia: COP 5.9T 2023; Vanti: COP 3.8T 2023).
Commercialization (Energy) Energy Commercialization Energy commercialization companies (retail), Distribution companies (often integrated) Selling energy, billing, customer service, managing contracts. Organización Terpel, Grupo Empresarial EPM, Air-e, Afinia, Vanti, Biomax Biocombustibles Specific volumes of energy sold not provided. Revenues indicate size (EPM Dist/Comm: COP 26T 2023; Air-e: COP 6.1T 2023; Afinia: COP 5.9T 2023; Vanti: COP 3.8T 2023; Terpel Rev: COP 33.94T 2024; Biomax: COP 3.7T 2023).

Examples of Main Players

Detailed profiles and case studies for some of the most relevant players across the value chain:

  • Ecopetrol S.A.: As the state-controlled integrated oil and gas company, Ecopetrol is the cornerstone of Colombia's hydrocarbon sector. It dominates E&P, midstream transportation (owning major pipelines), and downstream refining (operating the country's main refineries). Ecopetrol produced 746 kboed in 2024 and transported over 1.1 million bpd in 2023. The company is strategically shifting towards energy transition, investing in green hydrogen and carbon capture, reflecting a response to global energy trends and national policy, though it has decided against further hydraulic fracturing pilot projects. With revenues reaching COP 133.3 trillion in 2024, Ecopetrol is the largest company in Colombia by revenue.
  • Grupo Empresarial EPM: This public utilities group, based in Medellín, is a major force in the electricity sector. While it has some generation assets (including involvement in the significant Hidroituango hydro project), its largest contribution by revenue comes from its energy distribution and commercialization segment. EPM is considered the largest electricity distribution company in Colombia. Through subsidiaries like Afinia (Caribemar), EPM serves significant regions like the Caribbean coast. Their broad portfolio across generation, transmission, distribution, and commercialization highlights their integrated role in the power sector.
  • Organización Terpel S.A.: Terpel is a dominant player in the downstream commercialization and distribution of fuels, operating a vast network of service stations across Colombia. They are also involved in the transportation and distribution of natural gas. Terpel's strategy includes adapting to the evolving energy landscape by exploring new energy solutions, such as infrastructure for electric mobility. With revenues of COP 33.94 trillion in 2024, Terpel is one of the largest companies in the country, primarily driven by fuel sales.
  • ISA (Interconexión Eléctrica S.A. E.S.P.): ISA is the backbone of Colombia's high-voltage electricity transmission system. As part of the larger Grupo ISA, this company is critical for connecting generation plants to distribution networks across the vast geography of Colombia. Their role is purely midstream for the electricity sector, ensuring the reliable bulk movement of power. Their significant revenue (COP 3.7 trillion in 2023 for Interconexión Eléctrica) underscores the importance of the transmission segment.
  • Celsia S.A. E.S.P.: A subsidiary of Grupo Argos, Celsia operates across generation, transmission, and commercialization in the electricity sector. They possess a diversified generation portfolio, historically heavily reliant on hydroelectric power but increasingly investing in and acquiring renewable assets, particularly solar and wind projects. This focus on renewables positions Celsia as a key player in Colombia's energy transition efforts. Their revenue was COP 6,229.9 billion in 2023.

Volumes and Sizes

The size of the Colombian energy industry can be gauged through the production, transportation, and revenue figures of its key players.

  • Hydrocarbon Production: Ecopetrol, as the dominant producer, highlights the scale with 746 kboed in 2024. Its crude oil production alone constitutes 60% of the national output, and its gas production 70% as of October 2024. Other significant producers, though not detailed with volumes in the provided context, include companies contributing to the remaining national output.
  • Hydrocarbon Transportation: Ecopetrol's transportation volume of 1,113 thousand bpd in 2023 demonstrates the significant midstream activity required to move crude and products.
  • Electricity Generation: While specific national generation volumes or capacities for all sources (hydro, thermal, renewables) are not provided, the significant hydraulic capacity held by players like Celsia (95% of their portfolio in 2022) points to the country's reliance on hydropower. The acquisition of 675 MW of solar and wind projects by Celsia indicates the growing size of the renewable generation segment.
  • Distribution & Commercialization Revenue: The revenue figures for major distribution and commercialization companies illustrate the significant market size at the end of the value chain. EPM's distribution and commercialization segment generated COP 26 trillion in 2023. Other major players like Air-e (COP 6.1 trillion 2023), Afinia (COP 5.9 trillion 2023), Vanti (COP 3.8 trillion 2023), and Biomax (COP 3.7 trillion 2023) further emphasize the scale of energy sales and delivery across the country. Terpel's overall revenue of COP 33.94 trillion in 2024, heavily reliant on fuel commercialization, underscores the size of the liquid fuels market.
  • Company Revenues: The total revenues of key players provide an indication of their individual scale and market share within their respective segments. Ecopetrol's total revenue was COP 133.3 trillion in 2024. Grupo Empresarial EPM's total revenue was COP 37.5 trillion in 2023. Organización Terpel had revenue of COP 33.94 trillion in 2024. Celsia's revenue was COP 6,229.9 billion in 2023. ISA's Interconexión Eléctrica unit had revenue of COP 3.7 trillion in 2023.

References

  • Energy Analytics Institute (EAI). reporte-4t23-ecopetrol-eng. (2024-03-01).
  • Macrotrends. Ecopetrol S.A Revenue 2010-2024 | EC.
  • LaNota.com. Ranking 2024 sector energía eléctrica de Colombia. (2024-12-05).
  • LaNota.com. Ranking 2022 sector energía eléctrica de Colombia. (2023-10-18).
  • Stock Analysis. Organización Terpel (BVC:TERPEL) Revenue.
  • GlobalData. Celsia SA ESP Company Profile.
  • Infobae. Ahora EPM es la segunda después de Ecopetrol: así quedó el ranking de las empresas con mayores ingresos en Colombia. (2024-03-26).
  • Las2orillas.co. Los 4 grandes que más han ganado con la energía eléctrica en Colombia. (2022-09-19).
  • Stock Analysis. Organización Terpel S.A. (BVC:TERPEL) Stock Price & Overview.
  • GlobalData. Celsia SA ESP Company Profile.
  • ColombiaOne.com. Top Ten Largest Companies in Colombia. (2024-01-20).
  • Investing.com. Celsia SA (BVC:CELSIA) Revenue.