Andean Region
Leaning to the left
In 2022, both Colombia and Chile shifted toward the left of the political spectrum. Boric took office in Chile after winning the 2021 elections, while Petro became Colombia’s first leftist president. Boric has made two attempts to overhaul Chile’s constitution, both of which were rejected in a referendum in late 2023. Petro seems to be considering a similar path, having spoken about a constitutional reform without providing further details.
The energy transition and environmental stewardship have been key pillars for both administrations. Boric, for his part, has adopted a two-pronged plan: advancing Chile’s lithium and green hydrogen sectors.
In 2023, he presented the National Lithium Strategy to enhance private sector involvement across the lithium value chain while maintaining selective state control in public-private partnerships. To promote green hydrogen, he introduced the National Green Hydrogen Action Plan 2023-2030. “Chile’s future is envisioned in the green hydrogen and lithium sectors. However, achieving this vision depends heavily on a long-term state policy that facilitates permit approvals and the development of large-scale projects,” commented Juan Pablo Gazmuri, vice president at ASIQUIM.
When asked if there are any synergies between the mining and chemical industries that could be exploited, he answered: “All mining projects require chemical solutions.
Even a slight improvement in efficiency can make a significant difference, given the large production volumes. Moreover, as major mining operations deplete their ore grades, chemistry becomes essential to keep mines operational. By collaborating closely with the mining industry, we, the chemical industry, have several synergies to leverage.”
Left-leaning governments are often associated with protectionist measures, particularly when markets are flooded with foreign products at dumping prices. When asked about the situation, Jorge García, general manager of Petroquim—Chile’s sole polypropylene (PP) producer—remarked that Chile remains one of the most open markets globally and emphasized that “protectionism is rarely the answer”: “In times of significant oversupply, like we are experiencing today, you cannot ignore international prices. Even though the initial low offers may come from Asia, many regional producers eventually adjust their prices downward—not to the same extent, but they still adjust. This affects everyone, but the key is to learn how to navigate these situations by optimizing as much as possible,” he concluded.
“Introducing new brands regularly into the Chilean market has been pivotal. It is important to note that our current situation does not precisely mirror the broader Chilean economy; instead, we are steadily gaining market share by selling added value solutions.”
Christophe Jacob, CEO, Austral Chemicals
Colombia advances
While the Colombian Presidency announced during the 28th Conference of the Parties to the UN Framework Convention on Climate Change, held in November 2023 in Dubai, that “Colombia has decided not to sign any more exploration contracts for coal, oil and gas,” Felipe Trujillo, commercial and marketing vice president at Ecopetrol, assured GBR that: “At Ecopetrol, we are committed to being Colombia’s fuel supplier until the last consumer transitions away from gasoline and diesel.”
Be aware. Trujillo’s statement does not sound like an “anticipatory farewell” but rather like an ongoing adaptation driven by foresight. In fact, by October 2024, Trujillo revealed to GBR that Ecopetrol is set to launch an industrial-scale trial for Sustainable Aviation Fuel (SAF) using 2% to 4% of bleached palm oil: “This initiative aims to position Colombia as a regional leader in SAF production, involving close collaboration with the Colombian government and airline customers to gradually introducing SAF into Colombia’s jet fuel market,” he said.
Over the past year, in partnership with Esenttia, an Ecopetrol subsidiary, they inaugurated a state-of-the-art plant in Tocancipá. This facility has the capacity to process 12,000 t/y of post-consumer plastic for asphalt production. Their goal is to establish this as a mandatory practice in Colombia.
Regarding practices and regulations, GBR spoke with Daniel Mitchell, executive president of Acoplásticos. He mentioned that the figures for the Colombian plastic industry experienced some corrections: “When comparing figures, 2023’s negative numbers mirrored the positive numbers of 2022, balancing the growth. Inventory accumulation was a key factor, making 2023’s results seem worse out of context.”
Despite a challenging start, he was particularly expressive about the enforcement of Law 2232, which, although enacted in 2022, began to take effect on July 7, 2024. “I would say this process was rushed, but now Colombia has one of the most robust plastic regulations. It is worth highlighting that this legislation considers the impact on business by exempting essential goods and medical items from these regulations. Products that demonstrate a lower environmental impact through a comprehensive life cycle analysis (LCA) can also be exempt,” he concluded.
Article header by Marek Piwnicki at Pexels