Ecopetrol accelerating asphalt sales

Colombia's state-controlled Ecopetrol boosted asphalt sales in October to the second highest monthly level in nearly three years on road-building demand and rising exports.

Ecopetrol's asphalt sales jumped by 60.3pc to 54,656 tons in October, the second highest level since Argus began tracking monthly figures in January 2017.

The company's asphalt sales ticked up by 4.4pc from September levels. The Colombian market took 44,434t in October, up 30pc year on year.

Of the total production, Ecopetrol exported 10,222t, mainly to the US, followed by the US territory of Puerto Rico and Bolivia. Ecopetrol did not export asphalt in October 2018.

"The orders to supply asphalt have increased sharply, and we will deliver more asphalt if the national market demands it. We have enough installed capacity to supply the domestic market and export," Ecopetrol chief executive Felipe Bayón told journalists last week on the sidelines of an oil conference.

Ecopetrol's increased production stems from a change in the crude diet of its 2,500 b/d Apiay refinery, which started producing 3,000t/month in September, Bayón noted. Ecopetrol now has asphalt production capacity of 63,000t/month at its three refineries.

In the first 10 months of 2019, Ecopetrol produced 409,376t of asphalt, up by 46pc from the same period a year earlier.

Ecopetrol estimates that the domestic market will continue growing, with national demand exceeding 350,000t this year and the international market demanding about 70,000t.

Colombia's infrastructure sub-sector that covers construction of roads, railways and civil works grew by 13pc year on year in third quarter 2019, compared with a deceleration of 1.5pc in the same period last year, according to economic statistics agency Dane.

In Colombia, 24 highway projects covering 4,770km (2,964mi) are under construction, according to national infrastructure agency ANI.

Among the projects is the 202km Puerta de Hierro – Palmar de Varela y Carreto – Cruz del Viso highway, which sealed financing last week.

The project is the fourth road concession to secure financing this year. The roadway, which connects the departments of Sucre, Bolivar and Atlantico in the Caribbean, will demand 165,027m3 (58,278t) of asphalt, Spanish builder Sacyr told Argus.

If asphalt deliveries maintain an average monthly clip of 40,937 t/month, Ecopetrol could sell a record 491,250t in 2019, compared with 343,000t last year.

By Diana Delgado