UPDATE 1-Pacific Rubiales says impossible to predict Colombia LNG start-up

Mon Feb 2, 2015 12:02pm EST
 
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(Adds more company comment, background on Gazprom deal)

MILAN Feb 2 (Reuters) - Pacific Rubiales, forced by low oil prices to delay the start-up of its Colombia liquefied natural gas (LNG) plant, said it was impossible to predict when exports would begin, but it was working with buyer Gazprom on alternative options.

"The significant drop in oil prices has meant that we have had to reconsider all of our capital expenditures," Peter Volk, General Counsel at Pacific Rubiales, told Reuters.

Under a deal signed last year, Gazprom was contracted to receive half a million tonnes of LNG per annum over four years from the Colombian project.

"Gazprom is aware of the postponement and we are working with them in evaluating the alternative options," he said.

The project was due to begin supplying Gazprom from the second quarter. Deliveries were linked to Brent crude oil, down by half since June, a financial source said.

The delay shows how falling energy prices are undermining some LNG export projects worldwide.

Excelerate Energy put its Texan liquefaction plant on hold in December and Chevron on Friday said it will slow spending on its planned Kitimat project in Canada. (Reporting by Oleg Vukmanovic; editing by David Clarke)