Alexander Cadena, president of Cenit, talks to The Energy Year about the company’s position in the liquid hydrocarbons transport network in Colombia and how it is mitigating the effects of issues affecting the country’s pipeline infrastructure. A subsidiary of Ecopetrol, Cenit is the main transportation and logistics company for liquid hydrocarbons in Colombia.
What is Cenit’s position in the liquid hydrocarbons transport network in Colombia?
Cenit is the company that transports most of the crude oil and refined products that move the country. This energy is essential for the economic and social development of Colombia. Through our operations we are present throughout the national territory. As leaders in the Ecopetrol Group’s hydrocarbons, derivatives and related products transportation segment, we are vertically integrated in the oil and gas chain, which makes us a key link in the energy value chain.
Thanks to our pipeline transport network, we ensure compliance with the volumetric and quality commitments required by our customers and guarantee the evacuation of the crude oil produced in the country from the production facilities to the refineries in Barrancabermeja and Cartagena and to the export ports.
In addition, we guarantee the supply of refined products (motor and extra gasoline, diesel, Jet A-1, LPG and naphtha), thus contributing to the country’s energy security. In 2023, of the country’s estimated demand of 312,000 bopd (i.e., the inland zone and the northern zone served by polyduct), we transport 83% of the diesel, petrol and Jet A-1.
Currently, 42% of the energy consumed in the country is liquid fuels. In the transport sector, gasoline and diesel together account for about 83% of the sector’s consumption. 45% is gasoline and 45% is diesel; other fuels such as paraffin and jet-fuel supply 10% of the energy demand.
Considering the relevance of fuel in the economic development of the country and as a public service, we are an agent that plays a crucial role in the fuel distribution chain. In this regard, and with the aim of contributing to a reliable and efficient supply, Cenit makes investments to guarantee the reliability and availability of the current network and continues to develop initiatives.
Among them, the following stand out: the expansion of the capacity required by demand for the transport of liquid fuels, strategic storage, new routes for the internment of products from import terminals to the centre of the country, the reconversion of oil infrastructure for the transport of other energies, renewable sources of electrical energy, opportunities related to hydrogen and others.
We have an evacuation capacity of around 1.5 million bopd in the pipelines and 519,000 bopd in the polyducts. This capacity allows us to guarantee the evacuation and transport of production and cover the country’s demand for refined products.
What impacts do attacks, illegal activity and other issues have on Colombia’s pipeline networks and operations, and what measures is Cenit taking to mitigate their effects?
The hydrocarbons transport infrastructure faces two main setbacks caused by third parties: terrorist attacks and the illegal seizure of hydrocarbons.
These are concentrated in the operations of the Caño Limón-Coveñas pipeline, the Trans-Andean pipeline and the 14-inch Pozos Colorados-Galan pipeline, mainly in the regions of Catatumbo in Norte de Santander; the department of Arauca; the municipalities of Tumaco, Barbacoas and Ricaurte in Nariño; and La Gloria in Cesar.
It is important to point out that the attacks and the seizure of hydrocarbons derive from, among other reasons, the armed conflict and forms of illegal financing of criminal structures present in the areas where the Ecopetrol Group’s hydrocarbons transport systems pass through. Despite efforts made by state entities, this continues to be a reality in the country, causing constant damage to the oil infrastructure.
With regard to the measures taken by the company to manage the risks of oil theft and attacks, Cenit has implemented a strategy to incorporate technologies and procedures that limit the illegal extraction of hydrocarbons and promote inter-institutional coordination to combat the illegal economies responsible for these acts.
Some of our measures include the incorporation of technologies for prevention; operational control systems; inter-institutional coordination with the military and police forces and with specialised groups of the attorney general’s office for the prevention, intervention and judicial investigation of crimes; the permanent exchange of information with the Ministry of Defence and the security forces for knowledge and intervention; and relations with interest groups and links to state socioenvironmental investment projects that contribute to the mitigation of territorial risks and to the long-term growth of the economic and social wellbeing of the population.
Moreover, in order to deal with mishaps that could affect the infrastructure that are not caused by third parties, we have a Strategic Asset Management Plan, within which activities are developed to fulfil the cycle of knowledge, mitigation and attention to risk.
This is achieved through the information generated by intelligent tools, real-time climate monitoring (adaptive management with a predictive approach), inspections of the right of way and analysis of the condition of the geotechnical environment, and synergistic action to interpret the information and develop management plans, maintenance and predictive models.
This strategy makes it possible to identify areas with high criticality, prioritise necessary interventions and plan preventive and corrective measures in a coordinated manner. These measures include, for example, the application of coatings, structural reinforcement and the implementation of geotechnical barriers.
What mechanisms is Cenit using to achieve greater operational efficiency?
Cenit is an asset-intensive company (with more than 9,000 kilometres of pipelines) committed to our sustainability strategy and to our transformation into an intelligent company capable of taking on the challenges posed by new global dynamics. We are constantly working to achieve higher levels of operational optimisation and sustainability.
We seek new and better ways of doing things, increasingly cleaner and safer operations, and new services and logistics alternatives for our customers in order to continue generating value for the business group and the country. This is why Cenit’s operations are concentrated in the Integrated Operations Centre – CIO – which comprises the Remote Operation Centre, the Operational Excellence Centre, the Analytics Intelligence Centre, the Hydrocarbon Seizure Control Room and the Crisis Room.
From the CIO, the coordination, execution of supervision and centralised operation and real-time monitoring of the hydrocarbons transport systems, which extend throughout Colombia, is carried out. These activities are supported by the coordination of our core business processes, technological tools and the experience of our team.
The Analytical Intelligence Centre leads the advanced analytical processes that allow us to discover correlations and patterns so we can have greater certainty about the operational dynamics of the transport network as a whole.
Since 2023, initiatives have been developed which promote the implementation and use of advanced analytics solutions and emerging cognitive technologies (such as artificial intelligence, machine learning and deep learning), providing the company with tools that have the ability to predict what will happen in the future and identify the best business decisions in the face of complex problems.
Through the maturation of six high-performance cells, solutions have been developed that impact core business and support processes, fostering a culture of quality, data-driven decision making.
Moreover, to carry out our process, we require an estimated 1,028 GWh of energy per year, which is why energy management and decarbonisation have become central elements of the corporate strategy.
Since 2020, we have understood the energy transition as an opportunity and began our efforts to achieve high levels of energy efficiency through the implementation of good operational practices and the establishment of optimal operational schemes, which have allowed us to achieve significant savings.
This operational control contributes positively to the emission-reduction targets we have established, in addition to the efforts to incorporate low-emission logistics solutions that provide part of the energy required by our operations.
In April 2023, Cenit became the first midstream company in Colombia to achieve the ISO 50001 – Energy Management international certification, which demonstrates that we are a company committed to the efficient use of energy and to sustainability.
In terms of network reconfigurations, and in the context that a possible decrease in domestic oil production could reduce asset utilisation, Cenit and its subsidiaries have evaluated opportunities to take advantage of the installed pipeline capacity to serve domestic demand for other energy sources.
The reconfiguration of pipelines to meet infrastructure needs for gas production, for example, could reduce the time to market and increase the viability of production projects in the short and medium term.
The reconversion of oil pipelines to polyducts to provide reliability in the supply of liquid fuels to the country is also an opportunity that would benefit the resilience and capacity of the transport system, allowing for continuity in the event of emergencies or contingencies that compromise the distribution of products.
These and other opportunities have been evaluated and have matured in recent years, and work is being done with potential customers and regulatory institutions, specifically on the mechanisms that could enable opportunities in the short term.
In what ways is Cenit embracing Industry 4.0 – AI, IoT and big data – to run smarter operations?
Among the most relevant AI applications we have used are predictive analytical models for pipeline integrity management, digital twins for predictive maintenance to anticipate failures and optimise asset management and the prediction of fuel demand to guarantee fuel supply.
Industrial IoT is represented by approximately 25,000 instruments connected via the industrial internet to supervisory and process-control systems, facilitating the real-time monitoring of our transport infrastructure and improving the supervision, control and response to events.
With big data, we analyse huge volumes of operational data to identify patterns and optimise and adjust our operational strategies in real time, which improves efficiency and decision making. These technologies allow us to operate with greater accuracy, reduce costs and minimise risks.
What details can you give us about the digital-transformation strategy that Cenit is implementing?
Cenit’s digital-transformation strategy focuses on the exploration and application of cutting-edge technologies, which cover the main business needs aligned with the corporate strategy. These technologies maximise the benefits for the company by enabling safe and environmentally sustainable growth, reducing greenhouse gas emissions through efficient energy management and diversifying via nature-based sources.
The digital-transformation strategy comprises three phases.
The short term (the next two years) concerns the implementation of technological solutions for data-driven decision making by integrating applications that enhance innovation and improve efficiency and security. In this part of the strategy, you find the strengthening of data lakes, innovation models and data governance and the implementation of digital operational tools – such as electronic logbooks – structured rounds and digital work permits.
The medium term (three to four years) focuses on operating with greater analytical capacity and less oversight through the use of advanced digital tools. This phase includes the implementation of virtual assistants for operations and the implementation of robotic process automation.
The long term (more than four years) plan is to have an integrated operation with physical security, HSE, energy management, asset management, logistics and procurement components for more informed decision making in the face of new business challenges.
These operations will take advantage of the industrial metaverse (augmented, virtual and mixed reality) and the expansion of our core activity by integrating asset management, energy transition and low emissions.
What sustainability strategies are you applying in your operations, and what actions have you implemented through your carbon-neutral programme to become a net-zero company?
In an environment where sustainability and technological innovation are fundamental, Cenit has developed the SosTECnibilidad Strategy to guide our operations and promote responsible business practices.
Cenit is committed to the circular economy through the Sustainable Stations programme, which is focused on mitigating climate change, managing water and waste, conserving biodiversity and promoting climate change adaptation.
In water management, we are moving towards “water neutrality,” and we have achieved a 54% reduction in fresh-water abstraction since 2021 through 20 “water-harvesting” projects and seven water-recirculation projects in various stations. Regarding solid waste management, we have set out to be zero waste by 2030 and have reduced unusable waste by 19%, supported by partnerships with recyclers and organic-waste recovery projects.
To mitigate climate change, Cenit and its subsidiaries – which are certified as carbon-neutral by ICONTEC – have made significant progress in the transition to a more sustainable energy matrix, which has allowed us to reach 54% of our 2030 target with the installation of 82.1 MWp of renewable capacity.
The transition, in addition to our energy-efficiency actions developed since 2019, have enabled us to reduce around 54,000 tonnes of CO2e, generating annual savings of COP 21.1 billion [USD 5.43 million] and the sale of surpluses worth COP 3.2 billion [USD 823,000]. In addition, the acquisition of carbon credits has benefited 17,000 people and contributed to the conservation of more than 2.5 million hectares [25,000 square kilometres] of strategic ecosystems in Colombia.
These initiatives reflect Cenit’s firm commitment to sustainability and its vision of becoming a net-zero company, integrating technological innovation as the core of its business strategy.
What details can you give us about the milestone reached with the San Fernando solar park and the acquisition of the Cantayús hydroelectric power plant?
Firstly, the San Fernando solar park is located in the municipality of Castilla La Nueva, Meta, and is built on 58 hectares [580,000 square metres]. The park contains nearly 130,000 solar panels with an installed capacity of 60 MWp. It is both Cenit’s and Colombia’s largest photovoltaic self-generation project. It supplies energy for Cenit’s and Ecopetrol’s operations.
The project had generated 48.23 GWh by 2024, representing a reduction in emissions of 7,335 tonnes of CO2e, of which 2,187 tonnes apply to Cenit’s carbon footprint and the remaining 5,148 tonnes correspond to the operations of Ecopetrol’s Orinoco region.
Secondly, the Cantayús small hydroelectric plant was acquired by Cenit in December 2022 and is the company’s first self-generation asset of this type, which is located in Cisneros, Antioquia. It has an effective capacity of 4.3 MW and started operations on 17 May 2017.
During 2024, it generated 10.02 GWh of energy, which is supplied to Cenit’s Cisneros pumping station. The benefits of the plant include, for example, a reduction of 1,523 tonnes of CO2e, contributing to Cenit’s decarbonisation strategy and the reduction of its carbon footprint.
What other commitments and projects is Cenit carrying out in the field of renewable energies in Colombia?
Our bets have been focused in a number of areas. The first is energy savings, which we have addressed through energy-efficiency initiatives, cost optimisation via lower energy tariffs and the implementation of an energy management system in accordance with the ISO 500001 certification.
Second, we have used revenues obtained from the sale of surplus energy from projects in non-conventional renewable energy sources and the expansion of Cenit’s portfolio of services through the implementation of new businesses.
Third, we have decarbonised Cenit’s transport and logistics operations with the incorporation of FNCER projects into Cenit’s energy matrix and the reduction of greenhouse gas emissions, maintaining the company’s carbon-neutral certification.
Fourth, we have positioned the Ecopetrol Group as a pioneer in research, development and the implementation of new technologies that leverage the energy transition and decarbonisation strategy, enhancing the knowledge and skills of the Group’s human talent through strategic alliances with academia and international industry.
Fifth, we have diversified growth through low-emission fuels logistics (biogas and biomass at Tumaco), the reconversion of Cenit infrastructure (ports and pipelines) for gas transport and logistics and multimodal logistics of energy vectors and logistics for new energy sources such as hydrogen.
Sixth, we have incorporated energy generated from non-conventional renewable energy sources for the decarbonisation of Cenit’s energy matrix and solar (12 Cenit stations totalling 77.8 MW), wind measurement towers, tidal energy analysis, small hydro and other sources. We have also focused on energy storage options and nature-based solutions.
Seventh, Cenit participates in the development and implementation of projects and non-conventional renewable energy initiatives aimed at the development and improvement of the quality of life of the communities in the area of influence of its operations.
We achieve this through the development and implementation of energy communities, social investment projects, promotional activities and by working together with government bodies to provide energy solutions for communities.
What are Cenit’s short- to medium-term strategies for the coming years?
We are currently conducting a strategic planning exercise to prioritise business opportunities in the short, medium and long term, from which we will have results by the end of this year or early next year.
About 40% of the total investment potential of the segment corresponds to projects in operational continuity focused on guaranteeing the optimal state of the infrastructure for a transport service that is safe, reliable, cost-efficient and legally and technically compliant with the requirements of the market.
The other 60% of the investment potential consists of opportunities for growth in the traditional business, diversification and new businesses. The growth of the traditional business will focus on the country’s infrastructure needs in order to ensure continuity in the reliable supply of liquid fuels across the country.
In terms of diversification, the segment has the opportunity to take advantage of existing rights of way and infrastructure to meet the country’s needs in different energy sectors. Opportunities have been identified in natural gas, biofuels, renewable energies and, in the longer term, hydrogen logistics.
Colombia has an important advantage in the current circumstances of the global energy market. It has access to the main commercial routes in the Caribbean Sea as well as access to positions in the Pacific Ocean. There are certain assets in the segment with competitive advantages and with a very attractive outlook, with opportunities to provide reliability and security for the country’s energy supply in the medium term.
These include the Coveñas terminal, which is located in a privileged position on the Caribbean Sea and has sufficient storage capacity and conditions to meet the needs of exporting and importing hydrocarbons, as well as to eventually provide services to the Caribbean market for different businesses, such as natural gas.
Then there is the oil export terminal in Tumaco, which is the only liquid terminal in the country with access to the Pacific Ocean. Together with the development of oil activity in the departments of Putumayo, Nariño and Caquetá, it could represent an important asset for the Pacific trade routes and the energy supply in the south of the country.
At Cenit, we are actively conversing with different stakeholders and with the national government to develop these opportunities for Colombia based on the infrastructure that exists today and on our main assets, which are knowledge and our human talent. We are also interested in developing outside the country, as the internationalisation of the midstream segment is one of the components of the corporate strategy recently approved for the Ecopetrol Group.