Ecopetrol and ISA have successfully completed a strategic electrical infrastructure project that enhances the reliability, efficiency, and operational flexibility of the Barrancabermeja Refinery, one of Colombia’s most important industrial assets.

The project involved the construction of two single-circuit electrical distribution lines, each with a capacity of 60 megawatts (MW) at 34.5 kilovolts (kV). This capacity is equivalent to the monthly electricity consumption of approximately 200,000 Colombian households.

Thanks to this new infrastructure, Ecopetrol will be able to gradually release 6.5 GBTU of natural gas per day to the national market. This volume is comparable to 10% of Colombia’s demand for natural gas used in vehicles, contributing to the country’s energy security and optimizing the use of resources at the Barrancabermeja Refinery.

The electrical infrastructure includes a 1.2-kilometer overhead section and two underground sections measuring 160 meters and 850 meters, respectively, along with their corresponding technical connections.

The new connection enables the Barrancabermeja Refinery to increase its capacity to receive electricity from remote self-generation projects, particularly from solar and wind sources. It also provides the necessary backup and reliability to address contingency scenarios or changes in the operational configuration of industrial services.

The project will generate significant operational, economic, and environmental benefits. These include estimated annual savings of nearly US$6 million, resulting from fewer shutdowns caused by electrical failures, reduced gas consumption, and optimized energy costs for refinery operations.

Specifically, savings of approximately US$2.4 million per year are expected from the reduction of outages related to electrical failures, while an additional US$3.4 million annually will come from operational savings in gas consumption.

From an environmental perspective, the project will help reduce CO₂ emissions by approximately 205,000 tons per year, making a meaningful contribution to the Ecopetrol Group’s sustainability and energy transition commitments.

Through this initiative, Ecopetrol and ISA reaffirm their commitment to operational efficiency, environmental sustainability, and the strengthening of a robust and reliable energy infrastructure in support of company operations and the well-being of all Colombians.

Ecopetrol is Colombia’s largest company and one of the leading integrated energy companies in the Americas, with more than 18,000 employees. In Colombia, it accounts for over 60% of hydrocarbon production and manages most of the country’s hydrocarbon transportation, logistics, and refining systems. It also holds leading positions in petrochemicals and gas distribution. Through the acquisition of 51.4% of ISA’s shares, Ecopetrol participates in power transmission, real-time system operations (XM), and the Barranquilla–Cartagena Coastal Highway concession.

Internationally, Ecopetrol operates in strategic basins across the Americas, with exploration and production activities in the United States (Permian Basin and Gulf of Mexico) and Brazil. Through ISA and its subsidiaries, it also holds leading positions in power transmission in Brazil, Chile, Peru, and Bolivia, in road concessions in Chile, and in telecommunications.

La entrada Ecopetrol and ISA Successfully Complete Strategic Electrical Infrastructure Project at the Barrancabermeja Refinery se publicó primero en ISA.

Through its company ISA INTERCOLOMBIA, ISA gave Colombia the El Río 220 kV Interconnection, a project that strengthens the electric power system of the Atlántico, developed in accordance with the deadline commitment established with the Energy and Mining Planning Unit (UPME).

This project, which required an investment of approximately USD 88 million, built 15 kilometers of underground 220 kV transmission lines, the longest at this voltage in Colombia. Also, the new El Río substation was built and the Tebsa and Termoflores substations were expanded, all of them in the department of Atlántico.

Juan Emilio Posada Echeverri, ISA’s CEO, said “ISA and its companies have been driving the progress and development of the region with their presence for 24 years, currently covering more than 3,629 km of lines in operation and 670 km of lines under construction. Some of these projects are now delivering clean energy from renewable sources, which is an important step in our contribution to the energy transition.”

Luis Alejandro Camargo, manager of ISA INTERCOLOMBIA, pointed out that “this project offers a stronger energy transmission system by closing a high-voltage power ring in the Metropolitan Area of Barranquilla. This means that power can flow through different paths, ensuring the reliable, secure supply of energy in the region.”

Socio-environmental management

ISA and its companies remain loyal to their commitment to contribute to the development and transformation of territories through programs that generate sustainable value and leave a positive, everlasting legacy of empowerment, fostering, and respect for human rights. 

In this regard, the El Rio Interconnection project required a social investment in the territory (mandatory and voluntary) of approximately COP 6 billion, of which COP 3 billion were destined to the development of 26 community projects in the neighboring areas of influence, with a focus on strengthening sports, culture, technology, healthcare, education, and  productive units  through the Juntos Crecemos (Together We Grow) program.  Also, during the construction stage, 823 jobs were created in the region (municipalities of Soledad and the District of Barranquilla).

We also continue to work on improving environmental conditions by managing our business impacts for a proactive, significant contribution to mitigate and adapt to climate change and to protect and conserve ecosystems and their biodiversity. COP 600 million were invested for the protection of the environment, including COP 160 million for the fauna management program, ecological rehabilitation, and reforestation, where the planting of more than 180 trees in the municipalities of Soledad and the District of Barranquilla stands out. In addition, approximately COP 1.6 billion was invested in the Preventive Archeology Program through the Universidad del Norte. 

Costa Caribe Interconnection, another key project for Colombia’s energy transition

As part of the El Río 220 kV Interconnection inauguration event, ISA INTERCOLOMBIA informed that it also put into service the Costa Caribe 500 kV Interconnection in July 2022, which is essential to strengthen the reliability of the country’s energy system.

The project, which covers 22 municipalities in the departments of Córdoba, Sucre, Bolívar, Magdalena, and Cesar, installed 369 kilometers of 500 kV transmission lines and expanded three substations: Cerromatoso and Chinú in Córdoba, and Copey in El Cesar.

Juan Emilio Posada Echeverri, CEO of ISA, said “we are bringing development to Colombia through this project, which is an essential factor in the energy transition. The Costa Caribe Interconnection, in which USD 114 million were invested, improves the conditions for the provision of energy services, as it is a new way to connect the generators in the central region with the Colombian Caribbean. In the future, the project will contribute to transporting energy from solar and wind power plants to the rest of Colombia.”

“The Costa Caribe Interconnection was built with cutting-edge technology, which represents great engineering achievements for the country, by using towers ranging in height from 35 to 130 meters, seeking to reduce the impact on ecosystems so that there is harmony with the environment with a sustainable approach. Likewise, these are 500 kV double-circuit towers, which will allow the future expansion of these lines without having to buy or go through new land”, said Luis Alejandro Camargo Suan, General Manager of ISA INTERCOLOMBIA.

Within the construction of the project, social and environmental management initiatives were developed in the territory, amounting to COP 60 billion.

La entrada ISA gives Colombia a key project to strengthen the electric power system on the Atlantic Coast se publicó primero en ISA.

The project is considered of great relevance in the expansion plan of Chile’s electricity system as it contributes to the decarbonization of its electricity matrix. It will transport clean energy from Non-Conventional Renewable Energy Sources (NCRE) from the Kimal substation to the Lagunas substation.

Kimal-Lagunas was awarded to the company in an international public bidding process carried out by the Chilean National Electricity Coordinator (CEN). The project will have a total baseline investment of USD 194 million and will represent annual revenues of USD 14,7 million for ISA (from 2026, the year in which it will start operations).

The project, located in the Antofagasta region, includes a substation called Nueva Lagunas and a 500 kV line between the Nueva Lagunas and the existing Kimal substations. It has an approximate length of 180 km and will have a construction period of 48 months from the official awarding of the project through a decree published in the Chilean Official Gazette.

ISA currently operates the Encuentro-Lagunas (192 km) and Cardones – Polpaico (755 km) lines, two of the most important infrastructure projects not only in Chile but also in Latin America. Both projects have contributed to this country having the greatest progress in the decarbonization of its energy matrix on the continent.

“We will capitalize on the learning and synergies we have in property, social and environmental issues by operating in Chile. This Kimal-Lagunas project is undoubtedly the main project in Chile for ISA and its companies awarded this year in the energy business. This is not only because of its scale, but also because it effectively contributes to decarbonizing the country’s energy matrix,” said Juan Emilio Posada Echeverri, CEO of ISA.

About ISA in Chile

In Chile, through ISA INTERCHILE, the company operates 945 km of lines, has 13% of the transmission market in this country and is present in 5 regions.

ISA operates Cardones-Polpaico, considered one of the most important power transmission projects in Chile to date, in addition to the Encuentro-Lagunas line.

In 2021, the company, as part of a consortium, was awarded in a public tender, the construction, maintenance and operation of the Kimal-Lo Aguirre Line, the first in Chile with direct current technology (HVDC), which allows it to advance in a decisive way in the decarbonization of the energy matrix in this country.

La entrada ISA was awarded an important transmission project in Chile that will be key to the growth of renewable energy generation se publicó primero en ISA.

• ISA CTEEP transmits about 33% of the energy produced in Brazil and almost 100% of the energy consumed in the São Paulo state.

Grupo ISA, through its affiliate ISA CTEEP, continues to consolidate its share in the Brazilian energy market by energizing the first project of this year.

The start of full operation of the Interconexión Eléctrica Aguapeí, which occurred six months ahead of the deadline stipulated by the National Energy Agency (ANEEL), will benefit the Araçatuba and Presidente Prudente region in western São Paulo state, ensuring greater stability to the energy system that serves these municipalities.

Interconexión Eléctrica Aguapeí has over 120 km of transmission lines and two 1.400 MVA substations (Alta Paulista and Baguaçu), the first of which started operations in January this year.

“We energized another important project for the energy system in the São Paulo state. I am confident that we are moving in the right direction and advancing our growth strategy by generating sustainable value for the benefit of society and the environment. Our plan is to deliver between four and five projects during the year,” Rui Chammas, ISA CTEEP’s CEO, said.

The project received an investment of BRL 360 million (approximately USD 65,1 million), a decrease of more than 40% in relation to ANEEL’s capex and has an Allowed Annual Revenue (RAP) of BRL 60 million (approximately USD 10,8 million) for the 2020-2021 period. The project was awarded in lot 29 of transmission auction 05/2016.

This project is known for implementing innovative actions that minimized the environmental impact by increasing the distance of the transmission towers in relation to the ground and deploying cables with drones, which avoided interventions in about 25 hectares of Atlantic Forest, preserving local vegetation.

It also promoted several environmental compensation actions such as the planting of 4,95 hectares of local vegetation; the donation of 5.000 trees to Flórida Paulista, a municipality near the project, in agreement with Empresa Ambiental del Estado de São Paulo (Environmental Company of the São Paulo State – CETESB) and the companies contracted for the project’s construction; as well as the recycling of 100% of the recyclable waste generated in the project’s construction.

Finally, Interconexión Eléctrica Aguapeí has also had a significant social impact on the territory by creating around 500 jobs, through the hiring of local labor when the works began in the third quarter of 2019.

“We are committed to continue contributing to the quality of life and development of Brazilians, providing optimized solutions to the country’s energy infrastructure needs and taking care of the environmental impact of our projects“.

Bernardo Vargas Gibsone, ISA’s CEO.

ISA CTEEP

Through ISA CTEEP, the ISA Group is in charge in Brazil of transmitting around 33% of the energy produced by the National Interconnected System (SIN), 60% of the energy consumed in the southeast Region, and almost 100% of the energy consumed in the São Paulo state. Its energy system comprises over 20 thousand kilometers of transmission lines and 140 substations (assets in operation and under construction).

La entrada ISA affiliate in Brazil energizes its first project of the year se publicó primero en ISA.

La entrada The ISA Group, awarded with two energy transmission projects in Peru se publicó primero en ISA.

ISA CTEEP signed an agreement to acquire 100% of the shares of Piratininga- Bandeirantes Transmissora de Energia (PBTE) through the purchase of the shares previously owned by SF Energía S.A. (93%) and Kavom Energía (7%) . The price of each share is R$ 1.593 million, which is equivalent to approximately COP 1,1 trillion according to the exchange rate of November 23, 2020. PBTE owns a 30 kilometer (15 kilometers of double circuit) underground transmission line that connects two ISA CTEEP’s substations in the city of São Paulo. This concession was awarded by the Agência Nacional de Energia Elétrica (ANEEL) in a public tender held in 2016.

The completion of this transaction is subject to the terms and conditions inherent to this type of business, including the authorization by Brazilian government entities such as the Conselho Administrativo de Defesa da Concorrência (CADE) and the ANEEL, among others.

“This acquisition will increase ISA CTEEP’s total revenues by 4%. It also has potential for operative synergies in the short term thanks to its strategic location, which connects two substations that belong to our affiliate. Brazil offers great opportunities that we always evaluate in detail before making investment decisions, so we always look for a good risk-return balance. We are committed to helping improve the quality of life and development of the Brazilian people,” Bernardo Vargas said.

The ISA Group transports about 33% of the energy produced in the country, 60% of the energy consumed in the Southeast Region, and 94% of the energy consumed in the State of São Paulo. The ISA Group operates in 17 of the 26 states, with transmission lines covering more than 18.000 km.

La entrada The ISA Group signed an agreement to acquire a Brazilian energy transmission company that will provide annual revenues for approximately COP 128 billion se publicó primero en ISA.

This acquisition formalizes the Group’s entry into the road concessions market in Colombia and increases its road infrastructure to 1.164 km in Colombia and Chile.

As the pandemic affects economy, the ISA Group is committed to a sector that is fundamental for creating jobs and the country’s economic revival.
Through ISA INTERVIAL Chile, an affiliate of the group and the main operator of interurban road concessions in that country, the acquisition of 100% of the shares of the Concesión Costera Cartagena Barranquilla S.A.S. was completed, in accordance with the purchase agreement signed on October 24, 2019.

This transaction amounted to COP 2 trillion, including capital and debt. With this transaction, the group will consolidate an EBITDA of approximately COP 222 billion pesos in its financial statements, thus getting closer to reaching to the goals defined for 2030.

This is a new milestone for the Group, which has been working to provide energy infrastructure development in Colombia for five decades, now adding this new business unit in the country, which is critical to Colombia’s GDP growth. Likewise, in this difficult situation due to the pandemic, this acquisition will be another contribution to the economic revival of the country and to territorial strengthening, the protection of the environment, and the construction of the social fabric.

“This transaction, which required work teams from different countries, was the successful ending of several months of negotiations with regulation entities, insurance companies, and financers of the concession. We hope that our affiliate ISA INTERVIAL Chile is a relevant operator in Colombia, and that this acquisition helps continue to contribute to the progress of the Caribbean region regarding the road infrastructure business, as we have been doing with the energy transmission business,” Bernardo Vargas Gibsone, ISA’s CEO, said.

For Eduardo Larrabe Lucero, CEO of ISA INTERVIAL Chile, “Concesión Costera is the first major milestone in the company’s regional expansion. We expect to make a major contribution to the Colombian road concession market.”

The Roads business unit plays a relevant role in the Group’s portfolio, as it is a source of diversification. The Group’s investment plan for 2030 includes USD 12.500 million for growth, of which approximately USD 2.900 million will be used in the Roads business unit.

With this acquisition, ISA’s operating revenues would be distributed as follows: Energy 73%, Roads 23%, and Telecommunications 4%.

Several external advisors accompanied the ISA Group in this whole transaction, including Brigard Urrutia and Clifford Chance for legal and international affairs, Structure Banca de Inversión for financial affairs, and Deloitte as auditor.

About the concession

Concesión Costera Cartagena Barranquilla S.A.S, a company incorporated under the laws of the Republic of Colombia, subscribed with ANI the Concession Contract No. 004 on 10 September 2014. This Concession has 146 kilometers of roads and connects two main cities (Tranche 1: Cartagena-Barranquilla 110 km, and Tranche 2: Circunvalar de la Prosperidad between Malambo and Barranquilla 36 km of double lane).

The project includes the Viaducto Gran Manglar located on the Ciénaga de la Virgen in Cartagena, with an extension of 5,4 km that, besides being the longest in Colombia, received the Pan American Sustainable Development Award, the National Engineering Award, and the National Environmental Award, among others, because of its minimal impact on the mangrove and minimal occupation of the swamp.

The work contracted in the Concession has reached 98% progress, taking second position in progress regarding the Fourth Generation (4G) program in Colombia.

In Cartagena, this Concession crosses very relevant tourist and urban development sectors. In Barranquilla, it will improve mobility and access to the port area on the Magdalena river.

About ISA INTERVIAL Chile

ISA INTERVIAL Chile is the largest operator of interurban roads of the country and is in charge of the control, operation, and management of five Concessionaire Companies along 907 km of the South 5 Route, from Santiago to the Rio Bueno city (Ruta del Maipo, Ruta del Maule, Ruta del Bosque, Ruta de la Araucanía, Ruta de los Ríos), through which more than 151 million vehicles pass every year. The company is also building 136 km of Rutas del Loa.

La entrada Through ISA INTERVIAL Chile, the ISA Group completes the acquisition of Concesión Costera Cartagena Barranquilla se publicó primero en ISA.

The project is part of the Economic Revival Plan announced by the Chilean government a few weeks ago, after months of expectations and preparation of strict protocols that have been designed to avoid the spread of COVID-19.

Committed to transforming this tranche with better infrastructure standards and road safety, the construction of the 112 km started on Monday, August 17, with a work schedule that is adapted to the health emergency and includes strict protection measures aimed at employees, such as controlled shifts, mandatory distancing, PCR regular testing, and reduced work teams.

“The safety and health of employees, contractors, neighbors, and users is our priority. We are happy to start the works in this region to continue to connect people, this time in northern Chile. We know the importance of having roads with better safety standards to save lives and support connectivity between users and productive sectors of the region,” Carlos Fuenzalida, Ruta del Loa’s CEO, said.

The first works will be developed for six months in three different areas at the same time: Carmen Alto Connection, Sierra Gorda Outgoing Line (km 58-70) and Calama Incoming Line (km 80-100). Also, as part of its commitment to boost the socioeconomic development of the region, the company pointed out that local labor will be preferred for the construction, thus contributing to economic revival and employment, which have been severely affected by the crisis.

About Ruta del Loa

Ruta del Loa is part of ISA INTERVIAL, the largest operator of interurban road concessions in Chile, covering 907 km of the Ruta 5 Sur, from Santiago to Río Bueno, in the region of Ríos. Currently, this affiliate of the ISA Group operates five tranches of Chile’s main roads: Ruta del Maipo, Ruta del Maule, Ruta del Bosque, Ruta de la Araucanía, and Ruta de los Ríos.

With this project, which is seen as of a great strategic importance for Chile, ISA is ratified as the largest operator of interurban roads in this country.

La entrada ISA INTERVIAL’s Ruta del Loa project in Chile starts works under strict biosecurity protocols se publicó primero en ISA.

The companies are purchased on a debt/cash free basis for USD 152 million. At the closing date, as reported by the seller, the cash balance of these companies is USD 6,5 million, with no financial debt, so the total disbursement amounts to USD 158,5 million. The six concessions located in central and northern Peru in the departments of Ancash, Cajamarca, Huánuco, Lambayeque, and Uyacali operate in the Peruvian Primary Transmission System (SPT) and Secondary Transmission System (SST).

The 220/138 kV line circuits, which cover 746 km, represent 2,4% of energy transmission revenues in the Peruvian market, with which the Group’s share in the market increases to 73%, consolidating it as the largest energy transmission company in the country.

“Peru is one of the key countries for our strategy to 2030 and this purchase allows us to continue strengthening our position in the energy transmission sector in that country. Peru’s energy sector has grown in recent years and for us it is key in the future design of regional integration. We know that these times are challenging for Peru and Latin America due to this pandemic, but this purchase is a clear demonstration of ISA’s confidence and commitment to continue generating connections,” Bernardo Vargas Gibsone, ISA Group’s CEO, said.

Scotiabank acted as financial advisor to ISA Peru. Also, Estudio Echecopar -a member of Baker & McKenzie International in Lima- together with Baker & McKenzie’s New York office were in charge of the legal advisory in this transaction.

About ISA Perú

ISA Perú is 100% owned by the ISA Group and operates the Oroya-Carhuamayo-Paragsha-Derivación Antamina 220 kV Transmission Lines, with 262 km in length, and the Aguaytía-Pucallpa 138 kV Transmission Line, with 131 km in length. Through this company, Consorcio Transmantaro, and Red de Energía del Perú, ISA operates around 12.000 km of lines across 22 regions, benefiting more than 21 million Peruvians and positively impacting 1.957 communities along the lines.

ISA’s most important projects under construction in Peru include the Mantaro-Nueva Yanango-Carapongo and Nueva Yanango-Nueva Huánuco connections, which will enter into operation at the end of 2021 and will benefit central and southern Peru.

Location of the concessions

La entrada The ISA Group purchases energy transmission company in Peru se publicó primero en ISA.