Pacific Rubiales says impossible to predict Colombia LNG start-up

[Gator]

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 <PRE.TO>, told Reuters.

    Under a deal signed last year, Gazprom <GAZP.MM> 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 <CVX.N> on Friday said it will slow
spending on its planned Kitimat project in Canada.

[jft310]

Costs matter .