Ecopetrol registered exceptional results in 2022, reaching its 2025 growth targets ahead of time. Could you briefly comment on this growth?

Back in 2019, Ecopetrol set an internal goal to double our petrochemical business by 2025 – which we did last year, without major OPEX investments and without any capex injections. If in 2019 we were looking at a 1.6 billion Colombian pesos (COP) business, in 2021, we closed the year with 2.45 billion COP, and in 2023, with 3.6 billion COP, registering annual growth exceeding 40% year-on-year. This incremental growth showcases the significance of Ecopetrol’s petrochemical business, especially in the context of the energy transition. With over 37 product lines within our petrochemical and industrial business, we have the flexibility to mitigate depressed market conditions – which can be seen today in the plastics industry - with stronger markets like aromatics, lubricants or asphalt.

How has the development of your trading businesses helped accelerate growth?

Our strategy is focused on securing constant, sustainable growth, allowing us to consolidate in key markets: For example, in Peru we have a market share of almost 80% in the aromatics value chain, whereas last year, this was only 10%. Similarly, in Ecuador we are also market leaders (95%) in aromatics. Besides aromatics, we have also had extraordinary success in the asphalt business, with over 45% growth in the last quarter.

Since last year, we have added two new commercial offices aside from Bogota. One is in Singapore, inaugurated last year, and one in Houston, due to start by the end of this year. The expansion to Singapore was motivated by the desire to build a local presence in Asia, where 60% of our crude exports go to. The Houston office will both sell petrochemicals, fuels, and crude oil and purchase other products like gasoline, naphtha, as well as propylene and other petrochemicals where Colombia has an import deficit (for instance, Colombia imports 30-40% of its gasoline needs).

Could you tell us more about the diversification to asphalt production?

Rather than offering a single asphalt quality, we now have various products of different qualities, exported globally, including in Asia and Africa. Our newly established trading arm and shipping charter allow us to be much more aggressive in terms of meeting client requirements and delivering to destination. Moreover, we have financial mechanisms in place to offer stable pricing and minimize the risks of price volatility.

Ecopetrol offers modified asphalt with recycled plastic, creating a circular economy that helps reduce the disposal of plastic in garbage dumps. To date, we have used the equivalent of 5 million plastic bags to produce almost 1,000 t of asphalt. Low-density PE, found in plastic bags, has little economic value to collectors and recyclers. So far, we have completed 13 projects at different locations in Colombia, testing the technology for different conditions. Additionally, we have incorporated polypropylene (PP) and even polyester (PS), with a great socioeconomic impact.

Ecopetrol has committed to invest over 25 trillion COP to accelerate the energy transition towards its “Energy that transforms” 2040 strategy. What is the focus of these investments?

One of our core focuses is the generation of green methanol by 2025. Ecopetrol has also signed multiple agreements to power our refinery and production sites with solar energy. But before we can fully switch to renewables, we are investing in the discovery of natural gas reserves in deep and ultra-deep waters. As the cleanest fossil fuel, LNG can bridge old and new energies. I believe Ecopetrol has the chance to become a key natural gas producer.

Ecopetrol has opened the first carbon trading desk in South America. So far, we have already neutralized 10 million barrels of crude exports, and we are offering carbon credits as a service, helping our customers decarbonize.

How do you observe the progress toward the energy transition in Colombia?

The energy transition in a country like Colombia will take a longer time as opposed to other countries with a higher purchasing power. In Colombia, cars are not accessible to everyone, which means that the switch to EVs will be delayed. As Ecopetrol, we must first support this transition by supplying cleaner fuels – for example, our gasoline “extra” has a similar quality to Euro 6, while our diesel has 10 parts per million sulfur content.