On July 22, 2024, Frontera Energy Corporation announced that its subsidiary, Sociedad Portuaria Puerto Bahía S.A. ("Puerto Bahia"), has entered into a Framework Collaboration Agreement with Gasco Soluciones Logísticas y Energéticas S.A.S. ("GASCO"). This agreement will focus on developing a liquefied petroleum gas ("LPG") project at Puerto Bahia's advanced liquids and dry cargo port terminal in the Bay of Cartagena, Colombia. The project, which includes construction and operation, is anticipated to be operational by 2027. Frontera holds a 99.97% stake in Puerto Bahia.

Orlando Cabrales, CEO of Frontera, remarked: "We are thrilled to partner with Gasco to develop and operate LPG facilities at Puerto Bahia. This agreement will enable Puerto Bahia and GASCO to introduce LPG facilities by 2027, addressing the growing LPG supply deficits in the Colombian market, which is projected to expand at 4% annually. These deficits create a significant opportunity for Puerto Bahia, alongside GASCO, to establish itself as the key hub for LPG imports in Colombia.

By utilizing Puerto Bahia's infrastructure and strategic location, combined with GASCO's expertise and existing domestic LPG market presence, the project aims to become Colombia's most cost-effective LPG importer. We anticipate capturing a substantial market share and generating annual EBITDA of $10-$15 million once the project reaches its full capacity."

Cristian Aguirre, General Manager of Gasco, stated: "This is a significant project that we have been developing with our team in Colombia, along with Puerto Bahía and Frontera. We believe this initiative will address a substantial portion of Colombia's LPG import needs, both in the short and long term. LPG plays a crucial role in the global energy transition and emissions reduction, and it is also a key fuel for industry, energy generation, and residential use in Colombia.

We will continue to collaborate with GASCO, Puerto Bahía, and Frontera to fully realize this important project and provide a top-tier LPG import facility to the Colombian market as soon as possible."

Puerto Bahia and Gasco have entered into a Collaboration Agreement to build a 20,400-ton LPG refrigerated storage facility at Puerto Bahia. The project is estimated to cost between $50 million and $60 million, with expenses to be shared by Puerto Bahia and GASCO. Puerto Bahia's contributions are anticipated to be primarily in-kind.

Under the Agreement, Puerto Bahia and GASCO will form a joint venture to develop, build, and operate the LPG facilities at Puerto Bahia's port terminal in Cartagena, Colombia. The project may also include additional phases to accommodate larger volumes based on LPG market demand.

The Colombian Mining and Energy Planning Unit ("UPME") reports that Colombia currently consumes approximately 700 thousand tons of LPG per year and will require 1 million tons annually by 2031. Under the base case scenario, the new facility is projected to import and supply approximately 160,000 tons of LPG per year to the Colombian market, increasing to 340,000 tons annually by 2030 and beyond. Once operational, the facility will be capable of accommodating two Very Large Gas Carriers ("VLGC") per month to supply LPG to the domestic market.

This partnership represents a significant advancement in addressing Colombia's increasing energy needs and highlights Puerto Bahía and Gasco's commitment to investing in the country's energy infrastructure.