What is TGI's business development strategy?
TGI is the market leader in the natural gas transportation business in Colombia with over 4,000km of pipeline nationwide. TGI holds 54% share of the market and holds operations in 18 departments, 220 municipalities, and more than 1,000 rural areas. We work to fulfill our promise to improve livelihoods with sustainable and competitive energy. During 2021, we have worked to adjust our core business through a robust transformation journey leverage on innovation, while maintaining solid financial and operational results for our stakeholders. In that direction, our work has focused on expanding our operational capacity and improving our service to clients. To do so, we are currently expanding our infrastructure network, as a critical issue to achieve our business objective as part of our organic expansion strategy, but we also keep a constant review of inorganic expansion possibilities. In that direction, we are currently reviewing markets such as Chile and Peru, as potential important growth areas for our core business. During 2020, the company increased its profits by 19.8%, as a consequence of the investment made in previous years to expand infrastructure. In 4Q2020, TGI implemented a strategy to create a new transitory policy considering the impact of COVID-19. Such policy included a new commercial transitory policy for distributors. We also effectively managed to optimize our costs, expenses, and CAPEX. In 2021, our projection is to increase productivity and constant transformation as part of the strategic agenda.
To what extent is TGI interested in the public works of Colombia, for example Pacifico, and how is the company looking to direct its pipeline of projects?
We are highly committed to the country's energy transition program and are currently working to provide solutions and alternatives for a cleaner and more efficient energy matrix. On the other hand, we are concerned about the end user, be they residential, industry, or power generators. We must seek a reliable system that allows the end user to be supplied as part of our guarantee. TGI is the best option for public works projects based on our extensive and proved experience. We operate the most robust gas pipeline in Colombia, and we are certainly willing to commit to projects presented by the national government in order to foster our relevance as a key partner for gas distribution in the framework of the energy matrix transition in strategic regions such as Pacifico, with important demands in social and economic issues. As key player in the energy sector, TGI is highly committed to support the government efforts to ensure the energy security of Colombia by offering the national gas market a reliable supply. We are a long-term infrastructure investor aiming to remain in the country.
What is the potential of natural gas to reduce pollution and carbon emissions, and why should Colombia lean on this energy source for the economy of the future?
We have contributed to the country's energy transition from both ends of the natural gas chain. From the demand side, we are developing demand for new segments. We are creating incentives for the industry for conversion from liquid fuels to natural gas. We are also offering flexibility to recover the thermal demand of the country. From the offer side, we have been delivering capacity expansion projects, such as the Cusiana Fase I, II Project, which allows us to transport 500,000kPCD from key sources of Colombia. For the future, we will innovate and introduce renewable gases into our portfolio, including hydrogen, and are exploring how we can play a leading role in the development of the latter. Our transportation infrastructure will be capable of leveraging this new energy vector in addition to our strategic geographical position close to La Guajira, where the main renewable energy project will be undertaken. Natural gas is key in the energy transition strategy. TGI is developing an active agenda within the sector, such as industry and transportation and thermal generation.