NG Energy (TSXV: GASX) is starting the year off strong by effectively completing its pipelines at its Maria Conchita concessions in Colombia. The firm this morning announced completion of civil works to connect the company’s gas plant to the national gas system.
All flow lines have also been laid to connect the infrastructure together, with the firm indicating its us completing the consultation process with local communities so as to be able to make the final connection to the Transportadora de Gas International pipeline. The firm is also awaiting a final permit from the National Authority of Environmental Licenses to be able to connect the flow line to its Aruchara-1 well platform, which will see a final 40 metres of pipeline put into place.
That permit is expected to be received this month.
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In terms of the gas plant, assembly is expected to be complete in “the coming days,” with NG Energy waiting on the delivery of glycol and dehydration units which are awaiting transport to site. Once both the facility and pipelines are completed, the firm will then be able to convert currently outstanding letters of intent with three natural gas majors in the region into final take or pay contracts and begin generated cash flow.
Commented on the development, CEO Serafino Iacono stated, “2022 will be truly transformative as the Company begins production at Maria Conchita and executes on drilling SINU-9.”
NG Energy last traded at $2.31 on the TSX Venture.
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