Pacific Rubiales plans small-scale LNG exports starting next year.

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Fuente: BNAmericas.

Canadian oil firm Pacific Rubiales (TSX: PRE) plans to begin small-scale LNG exports from the La Creciente gas field on the SSJN-7 license in Colombia throughout the Caribbean by end-2012, according to the company's CEO Ronald Pantin.

The CEO revealed that a contract has been signed with LNG transport company Exmar. Pacific will sell the gas at prices between US$4.50/MBTU and US$5/MBTU.

A pipeline is under construction to link La Creciente output, currently stifled by bottlenecks in the Promigas pipeline, to the port of Coveñas, where offshore liquefaction will take place.

"We have a huge market in the Caribbean, with excellent prices. All these islands are using liquid fuels for power generation. We could have net-back of maybe four or five times what we had in the domestic market in Colombia," Pantin said during a conference call with investors and analysts.

The new export project would be Colombia's first. Pacific has previously talked about exporting CNG to Panama and other parts of the Caribbean, with initial date estimates put at the end of 2011.

Total La Creciente reserves have been put at 500Bf3 (14Bm3) following the recent gas discovery on Apamate-1X well. Flow rates of 24Mf3/d were produced from the well during initial testing in February.

Pantin also reported that delays in getting permitting licenses from Colombia's environment ministry had held up exploration work on the Quifa north block. The firm plans to drill 16 wells in the area, but work has been delayed due to changes in the ministry, he added.

Earlier this month, Enrique Velasquez, VP of exploration at Colombia's state oil company Ecopetrol (NYSE: EC) said that permitting problems had been felt across the whole industry.

Pacific also reported problems with transport in 1Q11, due mainly to flooding caused by extensive rains, as well as delays in bringing the Ocensa pipeline extension project online, which finally opened in March.

Pantin also said that Pacific plans to begin use of the much delayed STAR project on the Quifa field in July.