09:45 AM EDT, 07/22/2024 (MT Newswires) -- Frontera Energy ( FECCF ) on Monday said its subsidiaries, Sociedad Portuaria Puerto Bahia and Gasco Soluciones Logisticas, agreed to pursue a liquified petroleum gas (LPG) project at Puerto Bahia's liquids and dry cargo port terminal in the Bay of Cartagena, Colombia.

The agreement covers the construction and operation of the LPG project. The 20,400-ton LPG refrigerated storage facility is expected to be in service by 2027.

The LPG project aims to be Colombia's lowest cost importer and capture significant market share. It will generate yearly Ebitda of $10- $15 million once it reaches its target capacity, Frontera said.

Frontera owns a 99.97% equity interest in Puerto Bahia.

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