Exporting LNG with Multimodal Transportation (Colombia Case)

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Between 2022 and 2023, Colon LNG Marketing, commercial branch from Costa Norte LNG Terminal (Joint venture between AES and TotalEnergies) successfully implemented a pioneering multimodal LNG logistics chain, exporting LNG from Panama to Buenaventura, Colombia, using multimodal transportation with ISOcontainers.
This project demonstrated the technical and commercial viability of small-scale LNG distribution, aligning with AES’s corporate strategy of expanding cleaner energy access and enabling regional decarbonization.
The initiative created a replicable model for LNG supply to markets lacking pipeline or large-scale regasification infrastructure.

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Topics:

Energy resilience

Technologies:

Solar

Background & Context

Market Landscape:

Central America and the Caribbean face structural challenges: limited natural gas infrastructure, dependence on fuel oil and diesel for power generation and small demand centers.
Colombia, despite being a gas producer, start to face declining reserves and supply imbalances on its Pacific coast.
Buenaventura, strategically located in the Pacific basin, lacked direct pipeline interconnection, its demand has been supplied using CNG trailers loaded in Cali (150 km).
Due to declining gas reserves, the Colombia’s NOC Ecopetrol decided to explore options to install a Pilot Project to prove a maritime LNG supply solution.
Due to strict local regulation and laws, the pilot project should be executed in less than 3 months.

Initial Business Priorities:

AES sought to leverage the Costa Norte LNG terminal in Panama to expand into regional small-scale LNG supply.
The goal was to demonstrate flexible multimodal logistics using ship and truck with ISOcontainers, enabling AES to serve customers in Buenaventura.

Challenges & Opportunities

Key Challenges:

Market conditions: the project started after the worst LNG crisis in the history (Ucranian war and sabotage over GasStream gaspipeline) affecting the pricing with a lot of uncertainty.
Regulatory complexity: Export permits from Panama and import authorizations in Colombia required precise coordination. No LNG regulations were available in Colombia.
Infrastructure limitations: Buenaventura lacked LNG receiving terminals; all handling had to rely on ISOcontainers. Prepare a fleet of 16 units, owned (5) and rental (11), required a great effort.
Regasification: the pilot project required to rent a regas station in a cryogenic market very abnormal situation.
Shipping: to contract weekly slot for hazardous cargo was atypical in Panama shipping providers.
Commercial risk: Small volumes raised questions about scale, efficiency, and competitiveness versus diesel.
Operational reliability: Long multimodal routes (ship from Colón to Buenaventura, trucking within Colombia) increased exposure to delays and boil-off gas (BoG) management.

Opportunities:

First-mover advantage in regional LNG supply to early entry into the Colombian markets.
Proof of concept for scaling the model to Ecuador and Central America countries.

Strategic Priorities & Approach

Priority 1: Demonstrate technical feasibility

Show that LNG could be safely and reliably moved in ISOcontainers for multimodal transportation (across maritime and land legs).
Rationale: Break the perception that LNG required large-scale infrastructure.
Expected Impact: Establish AES as regional leader in small-scale LNG logistics.

Priority 2: Secure regulatory and commercial alignment

Work with Panama’s Secretaría Nacional de Energía and Colombian authorities (UPME, CREG, DIAN) to enable cross-border LNG trade.
Expected Impact: Create a regulatory precedent for LNG as a tradable commodity in ISOcontainers.

Priority 3: Position AES as a regional LNG hub

Use the Costa Norte LNG Terminal as a platform for small-scale LNG exports.
Expected Impact: Generate new revenue streams and support AES’s regional growth strategy.

Actions Taken

Established multimodal logistics chain: LNG loaded into ISOcontainers at Costa Norte, inland transportation to BAlbao port, shipped by feeder vessel to Buenaventura and trucked to final customers.
Implemented BoG management protocols, insulation optimization, and safety procedures under NFPA 59A and ISO standards.
Engaged port authorities in Balboa and Buenaventura to adapt container handling procedures for cryogenic and hazardous cargo.

Results & Impact

Quantitative Results:

Near of 100 multimodal ISOContainers operations and 2 year of regasification operation without any incidents and accidents.

Qualitative Results:

Achieved reliable supply to Colombian residential customers.
Strengthened trust with regulators by proving safe multimodal LNG handling.
Positioned Panama as a regional LNG hub.
Enhanced AES’s brand as a clean energy innovator in Latin America, opening great opportunities for AES in Colombia due to confirmed deficit of domestic natural gas production..

Lessons Learned

Flexibility is critical: Multimodal LNG supply requires agile contract structures to handle logistics variability.
Regulatory coordination adds time: Bilateral government engagement must be built into project timelines.
Scale matters: Economic competitiveness improves significantly with higher shipment frequency.
Customer education is key: Many clients lacked prior LNG handling experience, requiring AES to provide technical support.

Future Outlook

Expand model to Ecuador and Central America.
Integrate with new small-scale LNG vessels (e.g., small-scale LNG carriers for more efficient regional distribution.