Regulatory and Financial Due Diligence on 2,459-mile Natural Gas Pipeline, Colombia

Client needs

The Ontario Teacher’s Pension Plan needed regulatory and financial due diligence on TGI, the largest natural gas company in Colombia, to inform its decision to bid for a controlling interest in the company.

How Castalia helped

• Evaluated Colombia’s legal and regulatory framework for gas
• Assessed the stability and predictability of Colombia’s relevant regulations
• Identified regulatory risks and mitigants
• Prepared gas supply and demand forecasts
• Worked closely with the client to make sure they understood the opportunities and risks associated with the bid before submitting a proposal.

The outcome of our work

Our advice gave the fund the information it needed to submit a competitive first-round indicative bid. However, it was not successful as a right of first refusal was exercised by EEB, Bogota’s state-owned power company.