Annual Sustainability and Management
Report 2012
Message from the President
To our shareholders and other stakeholders:
During 2012 we continued to advance in our endeavors with a long-term perspective,
searching for the best way to give back to all our stakeholders. We are guided by sound
principles centered on the human being, within the concept of sustainability.
As part of our commitments, this year we accomplished important achievements and
faced some difficulties, which we will elaborate on in this report.
Our operation was impacted by the extreme weather conditions of late 2011 and early
2012, when torrential rains prevented us from carrying out work as normal, affecting a
section of our trunk gas pipeline. Climate change is having a marked impact on the
transmission of natural gas, posing new challenges that we need to face both as agents
and regulators.
After a delay of more than five years, the CREG (Regulatory Commission for Gas and
Energy) issued tariff resolutions for gas transmission companies. In the process they
stopped approving the investment projects needed to meet new demands and to
strengthen the redundancy of some transmission systems.
In 2012 we decided to focus our business on the transmission and distribution of natural
gas, the distribution and sale of electricity and related activities, which is why our Board of
Directors approved a promise of sale agreement for 100% of the shares of Promitel, a
company dedicated to transporting voice and data. For nearly 13 years the people of this
company worked tirelessly, making significant contributions to the achievements of our
organization.
Our financial results were better than those forecast in the budget, highlighting the
income growth of our portfolio.
In relation to our contribution to providing a better quality of life in our environment, we
note with satisfaction that our Promigas Foundation remains a benchmark for social
innovation and knowledge management, based on its contribution to quality education in
the region and throughout the country. It has also contributed to the generation of
1
income and entrepreneurship in families in the areas where we operate, providing
training opportunities, advice and microcredit to improve lives. Our inclusive business
Brilla is an example to follow in developing countries at a national and international level.
To consolidate our operations and ensure the company has a strong future, we will
continue working on the integral sustainability of all our processes. With this concept at
the heart of everything we do, together with the essential contributions of our people, we
will successfully respond to all our stakeholders.
Antonio Celia Martínez-Aparicio
President
2
Our Sustainable Management Framework
Corporate Strategy with a Sustainable Focus
Promigas defined its new corporate strategy in 2010, and set out its sustainability
management framework in 2012. This focus is evident today in the extension of its scope
to include strategic elements of the Company such as the corporate policy, which includes
the eight commitments that were defined by consensus, taking into account the
expectations of our stakeholders.
We work with dedication to implement our sustainability management program.
We talk with our
stakeholders
We identify
relevant
sustainability
issues
We build our
sustainability
focus in a
participative
way, materialized
in eight
commitments
We incorporate
the sustainability
focus in the
Corporate Policy
We define action
plans and
indicators to
generate the
eight
commitments in
coordination
with the
corporate
strategy
We evolve in the
exercise of
accountability,
with the
publication of
our first
Sustainability and
Management
Report
Below we present the specific commitments contained in the Corporate Policy, which was
disclosed by our President in 2012 to all collaborators, requesting that the commitments
be included in each of the processes they participate in.
Related Stakeholders
Commitments
Relevant
Issues1
Focus
1. Sustained
Growth
1
Promote the expected
performance and
sustained growth through
effective identification of
opportunities and
management of
investments and




Economic performance
Risk Management
Creating Shared Value
Research, development and
innovation
Shareholders and
related
companies
Others
Collaborators,
suppliers, clients,
energy sector,
Government
In 2012 we updated the relevant issues for each of the sustainability commitments, which we had identified in 2011
with our stakeholders (See Annual Sustainability and Management Report 2011, page 13).
3
resources, according to
the risk levels.
2. Ethical and
Transparent
Conduct
Develop our activities as
part of the best corporate
governance practices,
promoting ethical and
transparent behavior.
 Ethical corporate culture
 Good corporate governance
Shareholders ,
Board of
Directors,
collaborators,
suppliers
Related
companies,
Government and
authorities,
community,
communication
media and
society in
general
3. QA and
Service Culture
To provide reliable and
quality services, by
applying the highest
national and
international standards,
effective risk
management and
continuous improvement
of our processes.
 Client Service
 Quality of services
Internal and
external clients
Related
companies
4. Safe and
Healthy Work
Environment
Ensuring the safety of
our operations, providing
proper conditions and
strengthening the culture
of prevention and health
and safety behaviors.



Collaborators,
clients,
community,
suppliers and
contractors
Related
companies
Collaborators
Related
companies
Society in
general
Related
companies



Gas pipeline Integrity
Physical Security
Health and safety of
collaborators
Health and safety of
contractors
Customer Security
Security community pipeline neighbors
5. Integral
Human Talent
Promote the wellbeing of
our people and the
development of their
intellectual, emotional,
physical and social
dimensions, and to
maintain a positive work
environment.




6.
Environmental
Responsibility
Strengthen the
environmental culture
among our stakeholders,
promoting the rational
use of resources and the
prevention and
mitigation of the impacts
of our operation.
• Environmental Management
System
• Materials Management
(inventory, direct and indirect
inputs)
• Management of resources
(energy and water)
• Waste management
• Climate change
• Environmental Education
• Environmental management
4
Training
Wellbeing
Compensation
Corporate culture
suppliers and contractors
7. Sustainable
suppliers
Build and maintain
commercial relations
with suppliers and
contractors, under fair
and transparent
conditions.
 Recruitment and contracting
 Relationships and
communication
 Development of suppliers
8. Communities
with Quality of
Life
Contribute to improving
the quality of life in the
regions where we
operate, through social
management practices
with emphasis on
education.



Suppliers and
contractors
Framework for community Community and
local
relations
Contribution to the quality government
of public education in local
populations
Impact on the
communities of natural
gas infrastructure works
Related
companies
Related
companies,
National
Government,
NGO
Relationships with Stakeholders
Aware of the role that stakeholders have in the compliance with our strategic objectives,
we must maintain constant communication with them through various mechanisms.
In 2011 we opened a specific channel of dialogue to address aspects of our approach to
sustainability and our eight commitments, which has allowed us to get to know their views
and ideas, and to help identify relevant issues to strengthen our sustainable management.
In 2011 we held talks with employees, suppliers, contractors, related companies,
Board members and minority shareholders.
In 2012 we emphasized talks with our people: more than 90 workers from different
installations in Barranquilla, Cartagena and Riohacha participated.
Associations, committees or
working groups in which we
participate
American Gas Association
-AGA-
5
Activities
Active member of the Gas Control Committee (the only Latin American
company with a seat on this committee) and Transmission Measurement
Committee.
Asociación Colombiana de
Corrosión y Protección
(Colombian Association of
Corrosion and Protection)
Participation in the Board of Directors.
Asociación Colombiana de
Relaciones Industriales y
Participation of employees from Human Resources Management.
Personal -ACRIP- (Colombian
Association of Industrial and
Personal Relations-ACRIP-)
Asociación de Fundaciones
Empresariales -AFE- (Association
of Corporate Foundations-AFE-)
Participation of the Promigas Foundation as a Board member.
Comité Técnico del Grupo Apell
(Apell Group Technical
Committee)
Participation in the planning and execution of drills.
Concentra
Information exchange natural gas sector.
Consejo Nacional de Operación
-CNO- (National Council of
Operation)
Active participation of members of the Vice Presidency of Operations.
Fundación Probono (Probono
Foundation)
Promotion and protection of the rights of vulnerable communities without
access to legal services through the volunteer work of our lawyers.
Icontec
Participation in the creation and revision of standards.
Instituto de Auditores Internos
(Institute of Internal Auditors)
Training in professional standards of internal auditing and updates in changes
to them.
Latin American Corporate
Counsel Association
Exchange of ideas and best practices in discussion forums with lawyers from
Latin American companies.
National Association of
Corrosion Engineering
-NACE-
Participation of employees from Promigas Maintenance Management.
Naturgas
Active participation on the Board and the various working groups for the
analysis and management of issues in the natural gas sector.
Our Challenges in 2013

6
Achieve the appropriation of our sustainability focus expressed in our new
Corporate Policy and its incorporation into our management processes.
Sustained Growth
Economic Environment
This year transpired amid a still complicated situation in the world economy, especially in
Europe. The decline in investor confidence and high volatility in many financial markets set
the prevailing tone during this period.
This scenario has impacted emerging economies, as they have had lower growth than
expected. The Colombian economy, although it has not completed escaped from its
effects, had one of the most outstanding performances in the region and remains a
popular destination for investors. The contribution of the mining, energy and financial
sectors was significant, offsetting the decline in performance of industry and construction.
For the third consecutive year inflation remained within the target range set by the Banco
de la República (Colombian Central Bank) registering its lowest value in the last twelve
years. Factors such as the revaluation of the peso and lower oil prices, among others,
influenced the decline in consumer prices.
The bank responded appropriately to the circumstances that occurred during the year,
beginning with a possible overheating of the economy, through to a slowdown in the final
months of 2012.
Like most regional currencies the peso continued to strengthen against the dollar. The
remarkable appeal our country offers boosted the entry of considerable capital flows
exceeding the high amount of the previous year.
Improving employment rates, reducing informal labor, increasing access to higher
education and bridging the inequality gap remain priorities of our society. With this in
mind, at the end of the year a tax reform was approved reducing Sales tax rates,
establishing tax breaks for certain salary levels and decreasing the payroll taxes on formal
employment.
The year was very positive for the bond market. Government bonds had rates which were
in response to the low inflation and monetary policy. The equity market displayed a
recovery in the first months and then a short period of losses, followed by a subsequent
uptrend.
It is worth highlighting the effort made by the Government to improve the quality of
education. There are specific and focused plans that seek to reduce the significant backlog
7
we have in this area. The quality of our education must be an urgent commitment of
everyone.
The unemployment rate at the end of the year was 10.4%, slightly higher than expected,
given the less dynamic economy in recent months.
It is worth noting that Colombian government bonds were issued at an unprecedented
rate. A fixed rate of 4.375% is a clear demonstration of the attractiveness of the country to
investors, a result of a serious and professional management of our economy.
Sector and Regulatory Aspects

Price of gas and petrol: the price of natural gas from the La Guajira field continued the
upward trend of the previous years. In the first half it stood at USD/MBTU 5.80, while
in recent months it reached the maximum historical high of USD/MBTU 6.04, which
adversely affects competitiveness.
The Price of crude showed an upward trend in the first months of the year; the
following months were characterized by their relative stability. The price began to
decline from mid-May through July, due to the increased supply of OPEC countries and
inventories in OECD countries, lethargic performance in industrialized economies and
a reduction in geopolitical tensions in producing countries. There is no justification for
gas prices in La Guajira to continue to be directly linked to the prices of oil derivatives.
The need to review this situation has been commented to the competent authorities
on several occasions, as it creates obvious distortions. Indeed, the price of natural gas
in the interior of the country is at levels close to US 4/MMBTU and there is no reason
for such large differences to be presented in the price of the same product.
 Definition of a tariff: after a very long and unnecessarily complex process conducted
by the CREG (Regulatory Commission for Gas and Energy), which in our case
represented a delay of more than five years; in November 2012 the tariff rulings were
issued for the gas transmission companies. Most of these companies have been
forced to file motions for reconsideration, to try to gain recognition of the necessary
investment required to expand their infrastructure and service and to achieve the
consideration of essential criteria when setting tariffs. The damaging delays and
misconception of certain decisions of the regulatory body are a source of deep
concern and corrective action must be taken to restore confidence.
8
Shortening the times by deciding to simplify processes, and to have, if disagreements
occur, different instances of the same commission are just a few of the reforms
needed. To avoid further damages and without stopping the search for solutions to
our differences, we apply the new rates at the end of 2012.
For the majority of the transmission companies the regulator did not give out the
correct signals regarding the expansion of the system, and also ignored the
importance of incorporating additional production volumes to the supply. Neither
does it seem to notice that the devastating effects of climate change require
investments to provide reliability and redundancy. We feel that they are oblivious to
the need to take timely decisions.
 Modification of the Distribution Code: according to CREG Resolution 059 of 2012, the
natural gas residential customer now has the obligation to conduct a periodic review
of their domestic gas installation and get a certificate to prove service readiness, a
responsibility that previously lay with the distributors. Now they can choose the
company they choose from a list endorsed and published by the respective service
provider. This resolution, however, does not relieve distributors of their responsibility
to terminate the gas service to users who cannot demonstrate the adequacy of their
installations. We are closely monitoring the development of this measure, as it could
bring unnecessary complications in the delivery of service to our related distributors.
 Methodology for the distribution charge compensation: in 2012, through Resolution
CREG 090, a draft resolution was issued with the proposed methodology for defining
the distribution charge compensation. In our industry group, Naturgas, all the natural
gas distributors are working together in the preparation of comments to said
resolution in order to encourage investment, the appropriate compensation, while
establishing a modern and balanced tariff scheme to allow the mass use of the service
to be further extended.
 Supply index of the Ministry of Mines and Energy: this was updated in 2012 and
includes an analysis of the reserves and demands to ensure the supply of domestic
demand and define the possibilities for exporting gas.

9
Commercialization of natural gas: The CREG issued draft resolution 113 of 2012,
which introduced guidelines for the sale of gas and different types of contracts. Socalled wholesale and retail markets would be defined and the figure of Gestor de
Mercado (Market Operator), which would regulate matters relating to gas auctions.
The industry players have expressed our comments and we will actively participate to
ensure this regulation is adequate.
Natural Gas Consumption in Colombia
The consumption of natural gas of 894 MCFD2 on average, increased 2% compared to
2011.
352,807 new users were connected to the natural gas service during 2012, for a total of
6,583,092 families served, mainly in Housing Levels 1 and 2. This represents a 6% increase
compared to 2011. Industrial users grew by 33%.
The fact that more users now enjoy the benefits of natural gas reflects the remarkable
results of a joint effort between the Government and investors, and it is important that
the factors of this success, starting with regulatory confidence, are preserved and
consolidated. For the fifth consecutive year natural gas continues to be the best rated
service by the Superintendence of Public Services (SSPD).
Promigas
Throughout our history we've developed markets in Colombia and Latin America,
investing in new businesses and building the bases to ensure our sustained development.
We are an organization committed to energy and progress, which works diligently seeking
the adequate compensation of our shareholders, with a long-term and deep respect for all
groups with whom we interact. Our activities are focused on the transmission and
distribution of natural gas, the distribution and marketing of electricity and
comprehensive services for the industry. We have a presence in Colombia and Peru.
Corporate events 2012



As part of our corporate strategy of focusing business on the activities of transmission
and distribution of natural gas, distribution and sale of electricity and related
businesses, our Board approved a promise of sale agreement for 100% of the shares of
Promitel, a company dedicated to transporting voice and data.
We renewed our brand and established a new image inspired by what we are: a leader
in the transmission and distribution of natural gas; based on ethical and transparent
behavior; centered on people, focused on current and potential markets, and in tune
with our commitment to communities and the environment.
For the third consecutive year, Fitch Ratings assigned Promigas a BBB- (international)
rating for foreign and local currency IDRs, showing that the company reflects a low risk
2 Includes Ecopetrol inputs (operation of wells) and transmission (operation of compressors).
10
profile for investors, with stable and predictable returns. Similarly, the firm confirmed
the AAA rating for local debt.
Risk Management
At Promigas we classify business risks as critical risks and processes. Critical risks will be
analyzed during the first quarter of each year and are approved by the Board of Directors
and the processes are updated regularly according to our operational planning cycle. Both
are analyzed and managed in a coordinated and articulated manner.
40 actions were defined in 2012 to mitigate the risks where the residual risk assessment
was classified as high, with 88% compliance by year end.
It is worth noting the alignment of Corporate Control Management with the exercise of
process risks, using the assessment of inherent risks3 for the definition of the plan for
annual audits, which allows the verification of the existence and effectiveness of the
established controls.
Our Transmission Operations
The length of our gas pipeline system is 2,363 km and the maximum transmission capacity
545 MCFD. In 2012 the gas transmission volume was 336.7 MCFD, a decrease of 2%
compared to 2011. The electricity sector was responsible for this decline with a reduction
of 8% due to a good supply of hydroelectric power during the year.
Other sectors increased their average demand. Residential demand stood out, increasing
7% compared to 2011. According to these consumption figures, our gas pipeline system
used on average 70.12% of its transmission capacity.
Transmission volume per sector
Thermoelectric
Industrial
Residential
NGV
2011 (MCFD)
182.1
113.0
33.8
16.2
2012 (MCFD)
169.1
115.0
36.2
16.4
Variation (%)
-8
2
7
1
Climate change has been a critical factor in the transmission of natural gas and its severe
effects pose new challenges in the construction, operation and maintenance of our
infrastructure. In the last two years we have had delays, cost overruns and a range of
difficulties in our gas pipeline system.
3
The risk assessment by processes is carried out without taking into account the controls.
11
The most important event in 2012 was the case of the section of the trunk gas pipeline
opposite Cabica Island, which was put at risk due to two consecutive La Niña phenomena
(2010-2011) and the corresponding extraordinary increase of water in the Magdalena
river. This caused a critical period between January and March as the demands of
customers exceeded the transmission capacity, which was restricted by the limitations
caused by the sub-fluvial crossing of the Magdalena River. The range of operational
measures taken helped to meet the NGV and residential demands and in part the
industrial demands, minimize the restrictions on other shippers and to gradually recover
the gas pipeline capacity, as explained in the chapter on the Quality and Service Culture.
We must highlight the support received from insurance companies to safeguard our
assets, recognizing the economic impact of the emergency, which will enable the
replacement of said section before the end of 2013. Meanwhile, temporary measures
were taken, which were necessary and urgently required, to ensure we could provide our
gas transmission service.
Innovation
Promigas was one of 15 companies selected in meeting 534 of Colciencias to strengthen
the management capacities for the innovation of Colombian companies and to define and
adopt a strategy for innovation, enabling them to establish practices and to formalize the
processes of generation and appropriation of knowledge. This project began in July 2012
and will run until the end of 2013, including the selection of high impact ideas which aim
to structurally and functionally respond to the needs of Promigas from a strategic focus.
12
Our Portfolio of Investments
Gas Natural Transmission
Gas pipeline*
Length of gas pipeline (km)
Maximum pressure (Psig)
Promigas
2363
1200
Maximum Capacity (MCFD)
545
Operating figures*
Length of gas pipeline (km)
Transmission volume (MCFD)
Maximum capacity (MCFD)
Hired capacity (MCFD)
Volume/Maximum capacity (%)
Growth (%)
Transmetano
189
45
78
69
58
10
Transoriente
333
20**
42***
50
68
62
Transoccidente
Financial figures*
Operating income (millions of
pesos)
Sales costs (millions of pesos)
General expenses (millions of
pesos)
EBITDA (millions of pesos)
EBITDA margin (%)
Net profit (millions of pesos)
Net margin (%)
Promigas stake (%)
Transmetano
Transoriente
Transoccidente
11
36
69
64
51.9
5.4
31 707
59 139
5083
9026
30 476
1456
4506
5612
1232
22 766
1
12 080
38
99.64
46 153
78
1942
3
73.27
2858
56
1757
35
69.00
*Figures from 2012
**Transmission volume Gibraltar - Bucaramanga: 20 MCFD. Transmission volume Barrancabermeja - Payoa Bucaramanga: 14 MCFD
*** Maximum capacity Gibraltar - Bucaramanga: 42 MCFD. Maximum capacity Barrancabermeja - Payoa Bucaramanga: 32 MCFD
Transmetano



13
Surpassed the record transported volume in 2012, with the largest daily transmission
volume during November of 52 MCFD.
One of its major clients completed a 15-year contract, giving Transmetano the
opportunity to reach commercial agreements with shippers.
In order to expand market coverage and to position natural gas in the areas of
influence of the gas pipeline, in 2011 the company filed a regulated tariffs request with
the CREG for the gas pipelines in the municipalities of Yolombó, Don Matias, Maceo
and Santo Domingo, and after receiving the resolutions which established the
regulated tariffs for these municipalities must file motions for reconsideration.
Transoriente

Marked one year of operation of the Gibraltar – Bucaramanga gas pipeline, with the
transmission of 20 MCFD for this section and 14 MCFD for the Barrancabermeja Payoa – Bucaramanga section. It also reached 68% of hired capacity.
Obtained the certification of their management systems under ISO 9001 (Quality),
OHSAS 18001 (occupational health and safety) and ISO 14001 (Environmental).
It also received the NORSOK S-006 certification, the Norwegian standard adopted by
Icontec to facilitate companies in the hydrocarbons sector to monitor and evaluate the
performance of contractors with regards in industrial safety, occupational health and
the environment. Transoriente was awarded a score in category A: Excellent.


Transoccidente
 Transmission volume increased 5% compared to 2011, with 92% of its capacity hired.
 It was recognized by the Colombian Council of Safety with the Cruz Esmeralda
(Emerald Cross) in category 3 (scale from 1 to 5) for its management in health, safety
and the environment.
Integral Solutions for the Industry: Promisol
Operating figures *
Average dehydration volume (millions of cubic feet per day)
Available hours/month
Financial figures *
Operating income (millions of pesos)
Sales costs (millions of pesos)
General expenses (millions of pesos)
EBITDA (millions of pesos)
EBITDA margin (%)
Net profit (millions of pesos)
Net margin (%)
Promigas stake (%)
593
669
26 464
20 469
1747
9198
35
4506
17
100
*Figures from 2012
 Changed the company name and brand, from Promigas Servicios Integrados S.A.S.
(PSI) to Promisol S.A.S.
14



Renewed the contracts with customers for the provision of dehydration and
compression systems.
Reached an agreement to buy 51% of Enercolsa SA, a company located in Cartagena,
with the aim of expanding its portfolio of services and coverage.
Obtained the certification of their management systems under ISO 9001 (Quality),
OHSAS 18001 (occupational health and safety) and ISO 14001 (Environment).
Distribution of Natural Gas
The distributors of our portfolio carry natural gas to more than 2,616,000 users in
Colombia, 40% of the domestic market, which represents more than 9 million people, and
more than 100,000 users in Peru.
Coverage*
Number of
Communities
Potential market
Coverage (%)
Operating figures*
Circuits during the
period
Accumulated circuits
Users for period
Accumulated users
Volume (thousands m3)
Financial figures *
Operating income
(millions of pesos)
Sales costs (millions of
pesos)
General expenses
(millions of pesos)
EBITDA (millions of
pesos)
EBITDA margin (%)
Net profit (millions of
pesos)
Net margin (%)
Promigas stake (%)
*Figures for 2012
15
Gases de
Occidente
Surtigas
Gases del
Caribe
Efigas
Gases de
La Guajira
Cálidda
108
133
133
25
39
12
1 247 188
76.79
649 274
83.79
821 962
89.63
516 093
80.60
112 995
90.79
1 935 876
41.56
Gases de
Occidente
Surtigas
Gases del
Caribe
Efigas
Gases de
La Guajira
Cálidda
52 521
34 105
30 846
42 953
3321
70 358
1 116 687
60 601
857 556
1 035 191
617 589
40 112
561 995
640 570
803 914
32 382
720 563
1 060 117
490 544
41 792
395 389
362 368
89 731
5019
80 602
22 703
243 380
39 519
103 721
4 762 898
Gases de
Occidente
Surtigas
Gases del
Caribe
Efigas
Gases de
La Guajira
Cálidda
630 961
466 406
620 032
285 323
36 682
476 796
421 339
295 391
401 775
166 695
18 030
295 933
95 104
82 163
93 632
39 571
11 742
97 811
131 548
100 436
144 648
87 506
8529
114 060
21
22
23
31
23
24
79 385
47 459
112 967
48 024
5549
45 956
12.58
90.12
10.18
99.01
18.22
30.99
16.83
24.79
15.13
26.73
9.64
40.00


The results of the annual survey conducted by the respective Chambers of Commerce
in each city put the natural gas distribution companies in our portfolio, for the ninth
consecutive year, in the first place in their respective regions, out of all the public
service providers.
In April 2012 the new SAP software was successfully implemented in Surtigas, Gases
del Caribe and Efigas for their financial and administrative processes, which has given
us an improvement in controls, ease of reporting and greater productivity.
Gases de Occidente



Began providing the gas service in the 10 municipalities of Cauca, which increased the
potential population to 1,247,188 users as of December 2012.
An event of force majeure created by a landslide in the Mariquita - Cali gas pipeline (in
the Salinas sector), caused a 5-day interruption in the natural gas service to users in
the industrial sector and NGV. The service was safely reestablished, supported by
established procedures and the dissemination of preventive information in the media.
In December bonds worth COP 200,000 million were issued; COP 110,382 million
10-year bonds at a rate of 3.75%; and COP 89,618 million 20-year bonds at a rate of
4.13%. The company has an AAA rating from Fitch Ratings of Colombia.
Surtigas



Coverage was expanded to other regions of the country with the purchase of the
assets of Edalgas, the natural gas distribution company in northern Antioquia which
has a market of three municipalities (Puerto Berrio, San José del Nus and Cisneros) and
19,972 potential homes.
In 2012, 16 communities were supplied with the natural gas service through virtual gas
pipeline technology, for a total of 15,001 users.
As a result of proper commercial management, two customers in the industrial sector
in the departments of Bolívar and Sucre replaced coal with natural gas in a significant
percentage of their industrial processes, increasing the gas sold by Surtigas in 163
Mm3, equivalent 25% of the total volume.
Gases del Caribe


16
Gases del Caribe and its subsidiaries Efigas and Gases de La Guajira connected 78,882
new users to the natural gas service, reaching 1,196,602 communities in 197 towns of
the departments of La Guajira, Cesar, Magdalena, Atlántico, Bolívar, Caldas, Risaralda
and Quindío.
Efigas started the project to expand the coverage of natural gas service in 11 new
municipalities in Caldas and 5 in Risaralda, increasing the potential population by
34,000 users.
 Sales of Efigas decreased by 2.8 Mm3 as a product of gas restrictions in the months of
January, May and November from the Transportadora de Gas Internacional (Gas
Transportation Infrastructure) -TGI-, a company that delivers fuel to them. Thanks to
the commercial and technical management of the company, service restoration was
reestablished in optimal conditions of quality and safety.
Orión, Call Center Service Provider
The distributors in our portfolio in Colombia came together to create Orión, a company
launched in mid-2012 with the purpose of providing customer service with the highest
international standards. It is based in Cali and with over 100 consultants, serving users
located in the cities where our distributors are present.
Cálidda



Support for the national government and its plan to provide the mass use of natural gas in
Lima and Callao continues, reaching a total of 101,141 users. During the year it sold 20,813
connections with subsidies.
Construction of the Chaclacayo core was completed, increasing duct capacity by 4.6
MCFD.
In December 2012 a distribution contract was signed with a thermoelectric company
located in the municipality of Chilca, for a firm volume of 84 MCFD, valid for a period
of 20 years.
Brilla
Historical Figures
Credits granted (millions of pesos)
Number of benefitted users
Portfolio (millions of pesos)
Percentage portfolio >60 days (%)
Brilla Beneficiaries, by Housing Level
Level 1
Level 2
Level 3
Level 4
Level 5
Level 6
738,557
834,589
283,782
1.50
2012 (%)
32
43
19
4
1
1
This inclusive business, created by Promigas and the distributors of its portfolio five years
ago, is aimed at improving the quality of life of users. This social focus is key to delineating
the goods that can be purchased with the granted loans. The impact of Brilla is not only
reflected in the direct benefits to the user, but in many cases has become the source of
income for the services provided with the purchased goods. Likewise, suppliers linked to
17
the business have benefited, more than 180 nationwide, represented in their majority by
hardware stores and stores specialized in appliances and computers.
In 2012 the interest in the needs of its users led it to offer educational financing for
training and technological centers and university courses.
Among the strategies of the business we identify the microinsurance program, which now
covers more than 320,000 families who today have the ability to protect their family
through the following types of insurance: life; serious illnesses; permanent and total
disability and funeral costs. To date over COP 10,600 million in claims have been paid, thus
benefiting the most at risk families in the regions where we operate.
During its five years of operation, Brilla has benefited more than 800,000 families, who
have been awarded more than COP 700,000 million in loans, with a past-due portfolio of
just 1.50%. At the end of the year, EBITDA exceeded COP 50,000 million, equivalent to
10.9% of the EBITDA of the natural gas distributors.
In 2012 this initiative was selected by the G20 as one of the 14 winning cases out of 290
representatives from 75 countries, thanks to its sustainability and social impact, being
recognized as an innovative inclusive business model in developing countries.
Distribution and Commercialization of Electrical Energy: Compañía
Energética de Occidente -CEOCoverage (Zone of influence: Cauca)
Number of communities
Total users
Kilometers of networks
Operating figures
New users
Energy sales (GWh)
Energy losses (%)
Participation of users per sector
Residential (%)
Commercial (%)
Industrial (%)
Others (%)
Financial figures
Operating income (millions of pesos)
Sales costs (millions of pesos)
General expenses (millions of pesos)
EBITDA (millions of pesos)
EBITDA margin (%)
Net profit (millions of pesos)
18
2012
38
293,058
20,545
2012
6,425
457
21.9
94.44
3.75
0.52
1.30
2012
252,163
119,389
75,225
57,549
22.82
33,040
Net margin (%)
Promigas stake (%)
13.10
94.96
During 2012 significant achievements were shown in loss management, relationships with
communities, consolidating the image of the company, technological modernization of
processes, development of human talent, customer service, the creation of a payment
culture, the reduction in fraudulent connections and recovery of confidence:






6,425 new customers were connected, totaling 293,058.
Energy losses fell from 26.9% to 21.9%.
There are 38 sales offices in the 38 municipalities covered by the service.
Approximately COP 13,500 million has been invested to reduce the percentage of
users without measurement.
Mobile operations implemented in remote municipalities, to facilitate the collection
and reception of complaints.
With 46 complaints per 10,000 users the target of 50 complaints was exceeded.
Corporate Financial and Economic Management
Financial Statements
The main figures of the Balance Sheet and the Results Statement for the year 2012,
compared to 2011, are shown below:
ASSETS
Current Assets
Net Fixed Assets
Other Assets
TOTAL ASSETS
Balance Sheet
(figures in millions of pesos)
DEC-11
163,520
321,540
1,898,165
2,383,225
DEC-12
174,427
377,390
2,055,973
2,607,790
%
6.7%
17.4%
8.3%
9.4%
LIABILITIES
Current Liabilities
Long-term Liabilities
TOTAL LIABILITIES
250,254
828,588
1,078,842
408,146
690,364
1,098,510
63.1%
-16.7%
1.8%
TOTAL EQUITY
LIABILITIES + EQUITY
1,304,383
2,383,225
1,509,281
2,607,790
15.7%
9.4%
Total assets increased by 9.4% due to the increase in fixed assets and other long-term
assets. Within fixed assets we highlight the investments in infrastructure made during the
year, which amounted to COP 103,755 million, which included a change of coating,
sectioning valves and cathodic protection systems in the 5 sections of the pipeline and the
19
backup compressor at the Caracolí station for the expansion of the Palomino station and
the variation in the lines from 20 to 24 inches, among others.
As for other assets, during 2012 the capitalization of Cálidda was executed for COP25,528
million and advances for future capitalizations were registered for the companies
Complejo Energético del Este S.A. for COP 1,615 million and Sociedad Portuaria LNG Barú
SAS for COP 2,488 million. The Promigas-Gasprom merger was also carried out, Gasprom
was an investment vehicle owned 100% by Promigas, merged by a restructuring in the
investment portfolio of the company; the shares held by Gazel and Terpel in Transmetano,
Promitel and Promisol were purchased, for COP 11,776 million, with the stake in in these
companies reaching 99.6%, 100% and 100%, respectively.
Current liabilities increased 63.1% due to the increased financial obligations for the
transfer of short-term balances due, and accounts payable to suppliers for the
construction of the alternate sub-fluvial crossing, the commission for selling Promitel for
COP 3,229 million and recording the provision of COP 2,223 million for the
decommissioning of the gas pipeline opposite Cabica island.
Additionally loans were borrowed to cover the payment of bonds for COP 100,000 million,
maturing in May 2012, and to finance the investment plans of the company.
The decrease in long-term liabilities was due to the transfer of short-term financial
obligations, cited above, and the reversal of deferred tax recognized historically in
Promigas on the profits of Arenosa Investments for COP 24,332 million.
The equity of the company grew by 15.7% due to increase of the surplus as a result of real
estate evaluations performed at the end of the year and the increase in the surplus
according to the equity method valuation due to the appreciation of the permanent
investments.
Operating Income
Costs and Expenses
EBITDA
Operating Profit
Other Income
Other Expenses
Net profit
Results Summary
(figures in millions of pesos)
2011
2012
226,216
246,206
157,090
191,444
120,407
106,482
69,125
54,762
200,303
242,039
79,125
79,858
186,507
240,869
%
8.8%
21.9%
-11.6%
-20.8%
20.8%
0.9%
29.1%
Operating income increased 8.8% despite the fact that revenue for the transmission of gas
to thermoelectric companies was affected by the emergency in the trunk gas pipeline
20
opposite Cabica island. This was due to the payment of a portion of the compensation for
the emergency received from the insurer, for COP 31,552 million, as well as for the
revenues from the compression contract with Chevron signed in late 2011, more work
performed for industrial customers and the increase in revenues from the non-banking
finance business.
Costs and expenses increased 21.9% due to costs for COP 17,467 million generated by the
emergence of the trunk pipeline opposite Cabica island, which were recognized by the
insurance company; the higher expenses in new business projects and investment banking
fees for the Promitel process. Additionally, there was a higher consumption of gas in the
compressor stations as a result of the contract with Chevron, higher costs for industrial
clients and loan provisions of FNB.
The operating profit and EBITDA decreased as a result of more costs in 2012, as
mentioned above.
Other non-operating revenue increased 20.8%, due to the remaining payment of the
insurance compensation for the emergency (COP 32,490 million), and the increase in the
revenues using the equity method for Transmetano in 27%, Compañía Energética de
Occidente - CEO-in 80%, Promisol in 259% and Gases de Occidente in 15%.
The other non-operating expenses increased 10.5% due to the extra financial expense
resulting from the higher average debt balance to December 2012 (COP 923,088 million)
in relation to 2011 (COP 888,882 million), when registering the decommissioning of a
segment of the sub-fluvial crossing, for the provisions for the advance delivered for the
erosion control works on the Magdalena River due to the emergency and the dismantling
of the gas pipeline of the sub-fluvial crossing where this happened.
Net profit was COP 240,869 million, a growth of 29.1% compared to 2011. With these
results we achieved a Budget execution of 110% of the approved budget for 2012.
Disclosure and Control Systems for Financial Information
The monitoring mechanisms established by Promigas in its internal control system allow it
to reasonably guarantee that during 2012 there were no deficiencies in internal controls
that have prevented the proper recording, processing, summarizing and reporting of
financial information and there has not been any knowledge of fraud, malicious errors or
manipulations in the management report or in the financial statements.
These mechanisms are:
21



Internal audits by the Corporate Control Management of Promigas, based on the COSO
II and in compliance with the Sarbanes-Oxley Law-SOX, to evaluate the controls
implemented in the different processes and, especially, those related with the
processing of financial and accounting information.
External audits by international audit firms, which evaluate and issue a concept about
the internal control of the Company and, in general, about the processing of the
financial and accounting information and the statements generated by the company.
Management of the Audit and Corporate Governance Committee, aimed at assessing
the processes related to business risks and its control environment, overseeing the
presentation of financial information, evaluating the processes of Corporate Control
Management and the Statutory Auditor and ensuring appropriate transparency and
disclosure of information.
Perspectives 2013
Overall the expectations for 2013 are positive. It is expected that there will not be as
much volatility in the markets as in previous years and if the global economy continues to
recover we will continue to grow at higher rates, even though the implementation of
public works must be accelerated to give greater impetus to the economy.
It appears that El Niño will be moderate which means slightly higher gas consumption
than the previous year and food prices will not suffer such negative impacts. There is
cautious optimism about the peace process that is being decisively led by the
Government. Concerns exist about the appreciation of the peso and therefore the loss of
competitiveness of some of our exports, the central bank should keep looking at
reasonable and creative options to overcome, if possible, the revaluation process. On the
other hand, and while it is true that the issue deserves special attention, great care must
be exercised not to implement hasty measures without sufficient analysis of the energy
and natural gas prices on behalf of some industries who are decreasing in size and
claiming adjustments in these prices. The course of the necessary pension and healthcare
reforms will have to be watched carefully, as well as the results of the tax reform,
especially with respect to employment. We have the challenge of finding more effective
mechanisms and processes to build the infrastructure that is urgently needed in an
economy that is opening up more to the world. We must continue to support the
Government in its efforts to improve our education, which must be an objective of the
highest consideration for everyone.
Regulatory activity will be intense: The definition of the new marketing framework for the
wholesale market is expected; something must be done to obtain more homogeneous gas
prices. Current prices in La Guajira are not consistent with the reality of the market.
22
Also, the definition of remuneration methodology for distribution and marketing will be
relevant, as the new charges for the distributors of the country will be released, estimated
to be set before the end of the year. Hopefully the CREG will provide the proper
conditions to continue increasing coverage and benefiting communities that still do not
have a natural gas service.
No less important is the supply and reliability of supply in order to provide energy security
to the country in the medium and long term. In this sense it is a priority that the CREG
define what will be done if faced with a possible scenario of import and trading of LNG. Of
note is the consistent and serious commitment of the government to find new gas fields,
which will hopefully result in the consolidation of our reserves.
Regulatory decisions require us to look for other ways to make some projects viable. This
involves some risk because in a regulated public service the correct and timely
intervention of the State is necessary.
The Ministries that are part of the CREG should pay careful attention to their performance
and study the needed reforms urgently. They cannot continue to constantly delay
decisions and give mixed signals. Already as a result of this large investments have been
delayed with serious consequences for the country and many businesses.
In the global context the natural gas boom it is conducive to the growth of our businesses.
We believe that natural gas use will continue to rise, and in Promigas we want to remain
leaders in this process. Therefore, we advance in the search for opportunities and
synergies in our investment portfolio to continue to develop creative energy markets.
Our Challenges in 2013





23
To position Promigas to its audiences as a growth-focused organization in the sectors
the current and future companies in its portfolio belong to.
Continue the expansion of our business into new markets and sectors.
Contribute to business continuity by developing an operational contingency plan
(OCP).
Position Brilla nationally and internationally.
Strengthen management capabilities I+D+I.
Ethical and Transparent Behavior
Pillars
The behaviors and ethical, transparent practices are a constant in the organization and are
led by senior management. Therefore, we have defined and prioritized three fundamental
pillars: Code of Conduct, Code of Good Corporate Governance and Anti-Fraud Policy.
Code of Conduct
Establishes the guidelines so that all our employees, affiliates, suppliers and contractors
act ethically and responsibly, doing the right thing the right way and making decisions with
utmost integrity within the applicable regulations and in line with our corporate values.
We conduct in-person and virtual training annually for our people and contractors to
disclose the provisions of the Code of Conduct. Starting in 2012, this same training will be
provided quarterly to all employees who joined the company during that period.
In 2012, 100% of our collaborators received virtual or interactive training about the Code
of Conduct.
Code of Good Corporate Governance
Contains the necessary measures to ensure respect for our shareholders and investors,
and provide the organization transparent procedures to provide adequate and timely
information.
We will periodically perform updates to the Code in order to keep the highest standards of
corporate governance.
Anti-fraud policy
This tool provides the basis for reducing the risk of fraud through screening and
prevention, allocation of responsibilities, the development of controls and investigation
procedures.
In 2012 we carried out a training process for the prevention of fraud with collaborators
from key Promigas dependencies and related companies, such as the treasury, purchasing,
risk management, among others.
24
Other Self-regulation and Ethics Promotion Policies





Policy of Relations with Government Officials or Entities.
Manual for the Prevention of Money Laundering and the Financing of Terrorism.
Transaction Approval Policy-TAP.
Procedure for Transactions with Stakeholders with the Directors.
Conflicts of interest.
Compliance
Compliance management is a living process which forms part of the structure of the
organization and involves the definition, education, prevention, detection, collaboration
and execution, to ensure activities in our organization are consistent with ethical pillars.
To achieve this we work in outreach and awareness activities aimed at employees,
contractors and related companies; in 2012 we shared our good compliance practice with
them.
Reports
Promigas has provided mechanisms to report the situations that violate ethics and
transparency, the most important being open dialogues between collaborators and their
immediate manager.
Another method is the Confidential Reporting System, a tool used by Promigas and its
related companies so that any stakeholder can anonymously report incidents of noncompliance with the Code of Conduct or the like. This system has a hotline and a website,
both channels operated by an outside firm that ensures the confidentiality of reports.
In 2012 we led an intercompany alliance to conduct a workshop with the international
company Global Compliance4, directed at private companies in order to position and
strengthen the right way to conduct research. The training event, which this firm
conducted for the first time in Colombia, was attended by representatives of different
companies including EPM, UNE, Avianca, Prodeco and Ecopetrol, some of which
subsequently visited Promigas to get to know specific initiatives.
4
Global Compliance: expert in the implementation of confidential reporting systems and methods to investigate
possible misconduct.
25
Corporate Control
We believe that the proper management of internal control, led from senior management,
helps create a work environment conducive to the strengthening of values and
participative decision making.
In line with the above, in 2012 we made a diagnosis of internal processes to give greater
impetus to the decision-making process and to achieve maximize efficiency and
effectiveness in all our actions. Also, together with related companies, we conducted a
self-assessment of the function of the internal audit to align it with international
standards, which helps to increase investor confidence, customer satisfaction and
management effectiveness.
External, SSPD and Financial Superintendence.
External control is executed n line with the regulations that apply to us: Statutory Auditor,
Audit
Government Bodies





General Assembly of Shareholders: our maximum corporate body.
Board of Directors: senior management body acting on behalf of sustained growth of
the Company.
Audit and Corporate Governance Committee and Compensation and Development
Committee: accompanying the Board of Directors in its management.
President, Senior Management: lead the processes of the organization, with the
support of their teams
Eight Committees: responsible for the evaluation and monitoring of the processes and
activities.
The President of Promigas, Antonio Celia Martínez-Aparicio, has been present in the
Merco reputation monitor for 5 years, holding a position among the top 20. He was also
honored by the magazine Semana last year as one of the top 10 leaders of our country for
contributing to the advancement of Colombian society through positive change.
26
Shareholders
At the close of 2012 the Company had 754 shareholders.
Share Composition
Corporación Financiera Colombiana S.A.
EEBGAS LTD.
CFC Gas Holding S.A.S.
Amalfi S.A.
Fondo de Pensiones Obligatorias Protección Moderado
Consultorías de Inversiones S.A.
Promi CFC S.A.S.
Azurita S.A.
Gloscar S.A.S. Y CIA S.C.A.
LIPU & CIA S.C.A.
FPO. BBVA Horizonte – Moderado
AEI Promigas Investments LTD.
Fondo de Pensiones Obligatorias Colfondos Moderado
Conscar & CIA S.C.A.
CSDTG S.A.S.
Mayo Capital Investidura S.A.
Martdos S.A.S.
Negocios y Representaciones S.A.S.
Compañía de Seguros Bolívar S.A.
Monsalve Macías Consuelo del Socorro
Others
Total
Stake (%)
34.08
15.64
10.58
7.99
5.44
5.13
4.95
2.49
2.25
2.06
1.36
1.30
1.23
1.07
0.56
0.24
0.20
0.16
0.14
0.12
3.00
100.00
In the past two years the following changes occurred:
 In 2011, the Corporación Financiera Colombiana S.A. -Corficolombiana- and the Empresa de
Energía de Bogotá -EEB-, acquired through foreign Investors an indirect stake of 10.58% and
15.64% respectively.
 During 2012, through the of the foreign investors Promigas included CFC Gas Holding SAS
with 10.58% and EEB Gas Ltd with 15.64% in the book of shareholders. Durante 2012, por
medio de escisión de los inversionistas extranjeros, se incluyó en el libro de accionistas de
Promigas a CFC Gas Holding SAS con 10,58% y a EEB Gas Ltd con 15,64%.
 Corficolombiana registered two Takeover Bids-TOB-of Promigas shares by which it acquired
18.73%, which added to what it already had yields a 34.08% direct stake. Thus, the direct and
indirect stake of Corficolombiana is 44.66%.
Investor Relations 2012
 100% of the requests received by the Office of Investor Relations were resolved.
 86% of our shareholders receive their statements quarterly.
 100% can access our website, which has a section for shareholders.
27

7.54% participated in the General Assembly of Shareholders by a virtual link.
Board of Directors
Characteristics of the Promigas Board of Directors
100% of the members of the Board of Directors are Colombian.
Percentage of
Independent
members.
100% (according to Law 964 of 2005)
The members of the Board of Directors of Promigas must:


Profile and
requirements of
members

Possess knowledge and experience in the economic activity of the
company or in the industrial, commercial or financial field.
Have a good name and recognition for their professional competence
and integrity.
Be committed to corporate guidelines.
Promigas has an induction program for new Board members, giving them
access to comprehensive company information before they start performing
their duties.
Rules
The internal regulations of the Board of Promigas reflect the principles, rules and
procedures governing its operation. This is to facilitate its management and
provide greater transparency, efficiency and certainty to its performance.
Evaluation
The Board is self-assessed, both as a collegial body and the functions of each of
its members on the various committees. This body took the decision that in 2013
this mechanism will be implemented through a third party, strengthening its
corporate governance standards.
Remuneration
The General Assembly of Shareholders determines the fees to be paid to the
Board members for attending each session.
Composition of the Board
of Directors, by gender
2012
Men
Women
Composition of the Board
of Directors, by age 2012
Between 30 and 50 years
> 50 years
28
Number
%
8
2
Number
6
4
80
20
%
60
40
Promigas Shares its Best Practices of Corporate Governance
We highlight the following events we participated in during 2012:



Exhibitor at the Fraud Prevention and Mitigation event in the Company organized by
the firm Marcus Evans, where we shared our compliance practices and corporate
control.
Guest speaker to the 2nd Congress of Effective Auditing in the Energy Sector organized
by the Grupo EPM, ISA and ISAGEN, where we shared our experience in the
implementation of controls for compliance with the Sarbanes – Oxley law.
Selected to present the initiatives and our expertise in corporate governance at the
"Implementation of Best Practice in Corporate Governance" event organized by
Colombia Capital and the Colombian Stock Exchange. Here we highlighted the issues of
governance and the way in which we interact with the different stakeholders.
Our Challenges 2013


29
Implement a quality assurance program for the internal audit function, in line with
international standards.
Align corporate governance tools with our focus on sustainability.
Culture of Quality and Service
Our Service Culture
The service provided to our customers is supported by the internal culture of service, in
which compliance, quality, communication and attitude are fundamental aspects to
satisfactorily carry out the processes.
With the participation of all units, in 2012 we are carrying out two exercises:


Update the description of all the internal services of the Company.
Select, based on maturity and impact criteria, the services to assess in the annual
exercise of measuring satisfaction of internal customers.
Year after year we evaluate the services offered internally by the dependencies, and the
results are the basis for establishing service agreements. In the last measurement, the
satisfaction rate was 92.03%, an increase of 4.8% compared to the previous year.
In natural gas transmission we have 12 clients located in the Colombian Caribbean region,
among which are thermoelectric companies, natural gas distributors, cement,
petrochemical, and mining companies and other industries.
In our role as a distributor, we operate the natural gas distribution network in
Barranquilla, where 58 industrial customers are connected to the service.
Our goal is to guarantee our clients a timely, reliable and safe service, through the
adoption of policies, standards and practices, such as:



Quality Management System based on ISO 9001 version 2008.
Commercial Policy, which sets out the contractual options we offer to current and
potential clients and the conditions for optimal provision of the service, within the
regulatory framework established by the CREG.
Timely and efficient service requirements.
Our Operations
Operational excellence is one of the premises to offer our customers a reliable natural gas
transmission service with permanent availability, which motivates us to develop our
operation with a strict adherence to the highest standards of quality as well as national
and international regulations applicable to the business.
30
The year was atypical for Promigas, as due to the occurrence of two consecutive La Niña
weather phenomena, we began 2012 with key section of our gas pipeline system in Cabica
Island being exposed.
Principal operating figures
Volume of gas transported (MCFD)
Maximum Capacity (MCFD)
Average volume /Capacity (%)
Percentage of volume contracted with clients (%)
Gas leaks (number)
Gas losses (%)
2009
2010
2011
2012
359.3
545
65.93
390.4
545
71.63
345.1
545
63.32
336.7
545*
72.70
100
99
100
100
12
0.7550
15
0.6552
10
0.4829
7
0.6652
*Due to the adverse effect of the trunk gas pipeline transmission the average capacity was 463 MCFD.
Availability, reliability and continuity of the service
Number of service interruption events (attributable to Promigas)
Number of service interruption events (attributable to third
parties)
Availability of the service (%)
Reliability of the service (%)
2010
2011
2012
1
0
1
14
8
13
99.9992
99.9992
100
100
99.9994
99.9994
99.90
100
Continuity of the transmission service (%)
99.9996
Trunk Gas Pipeline Opposite Cabica Island Affected
In January 2012, a complex problem of erosion on the left bank of the Magdalena River
occurred, opposite Cabica island (Palermo village in the department of Magdalena and
Malambo municipality in the Atlántico department), caused by the intensity of the rain
and high levels of water in arterial channels, putting at risk a section of gas pipeline
between the Palermo station and Pimsa valve.
The river bed moved jeopardizing the integrity of the gas pipeline. For safety, we
decreased the pressures on this part of the pipeline. As a result the transmission of
natural gas to our thermoelectric and large industries customers was affected for two days
during the period of the emergency. Some thermoelectric customers were affected for a
longer period and with a complete restriction of their hired capacity while the required
construction works were carried out to restore the total capacity. We also implemented
the necessary contingency plans to ensure the safety of workers and the surrounding
community.
31
Faced with this situation we acted quickly by building a temporary bypass on the Laureano
Gómez bridge crossing the Magdalena river and two more complementary pipelines
opposite the island of Cabica, which allowed transmission capacity to be gradually
restored. As a permanent solution, we will build a new sub-fluvial crossing to replace the
section, which is expected to be delivered in September 2013.
Background
Promigas had identified the risks that this stretch of the pipeline could be exposed to at
the end of 2010. Specialized studies indicated that in the most aggressive river erosion
rate models the gas pipeline would only possibly be affected by the end of 2013, and as
such Promigas took each and every one of the possible mitigation measures possible to
control the situation; however, the erosion due to the La Niña phenomenon caused the
left hand side of the river in the Cabica island zone to go from handling 30% of the river
flow to 60%, leading to the problems described above.
To highlight
It should be pointed out that although said section handled 85% of natural gas
transported by Promigas, a timely and effective solution was provided that prevented the
occurrence of a serious emergency and assured deliveries to distributors to serve the
residential and natural gas for vehicles -NGV. This quick response was thanks to the
coordinated work with the government, communities and relief agencies.
During this situation we had a proactive and ongoing communication with all our
customers and the authorities of the sector interested in the situation, in order to keep
them abreast of developments and provide, in advance, the planning of their operations
depending on the restrictions on natural gas transmission capacity and effects on the
market in general. It should be noted that as a result of this situation, a coordinating
interagency group was created to ensure the supply of electricity to the Atlantic Coast and
especially avoid the risks present in the current summer.
Indicative Model for Control Center Management
We voluntarily opted to abide by the regulation presented by the Pipeline and Hazardous
Materials and Safety Administration, -PHMSA- aimed at ensuring human factors and other
aspects of management control center called the Control Room Management Final Rule,
as good practice to further strengthen our promise of operational excellence.
This management model for natural gas transmission control centers contains
recommendations concerning aspects such as training, fatigue management, alarm
management systems, timely disclosure, among others.
32
Metrology Laboratory
The lab is responsible for guaranteeing the metrological measurement systems in
Promigas. It is accredited by the National Accreditation in Colombia- ONAC-in pressure,
temperature and volume. In one of its two locations (Arenosa Station) the Flow Meter
Calibration Bank functions with high-pressure natural gas and Transfer Prover. In both
locations measuring equipment is calibrated to be used in the field to ensure accurate and
reliable measurement of gas volumes delivered to customers.
The Meter Calibration Bank is unique in Latin America and operates under AGA and OIML5
standards. It provides calibration services both nationally and internationally to clients in
the oil and gas industry, serving 69 in 2012, an increase of 6.52% compared to the
previous year.
The National Government recently created the National Institute of Metrology, an entity
which in 2012 under the orders of the Ministry of Industry, Trade and Tourism undertook
the assessment and evaluation of all the existing calibration laboratories in Colombia,
cataloged our lab as one of the best for its level of reliability, competence of personnel,
management system and quality of services rendered.
Maintenance Projects
With an investment of approximately COP 22,600 million in 2012 Promigas moved
forward with a gas pipeline renewal program that included the renewal of 35 kilometers
of covering and the replacement and automation of 14 shut-off sectioning valves in the
trunk gas pipeline. This is expected to improve the standards of integrity required to
ensure system security and reliability in the supply of gas to customers.
Satisfaction of External Clients
In keeping with our commitment to build lasting, long term relationships with our external
customers we annually evaluate their levels of satisfaction and loyalty, the results of
which are an important input for the development and implementation of action plans
that seek the continuous improvement in quality of the operation and service.
5
AGA Report No.7:2006, AGA Report No.8:1994, AGA Report No.9:2007, AGA Report No.11:2003, OIML R137-1:2006
33
As can be seen below, in 2012 some figures decreased, which naturally correspond to the
situation described above in relation to the impairment of the gas pipeline and its impact
on the service provided to our customers, despite our company's proactive efforts to
reduce them. We receive this feedback as an opportunity to reflect on and act decisively
on its improvement.
Results of the satisfaction survey for
external clients (%)
Loyalty index
General quality of the services
Satisfaction of customer facing
processes (%)
Billing
Commercial Relationship
Nomination
Operation
Maintenance
Complaints and claims handling
Request handling
Communications
2009
2010
93
65
2009
2011
91
70
92
77
2010
71
82
72
71
67
39
52
69
2012
86
72
2011
67
63
77
84
73
40
62
72
2012
85
89
75
92
63
75
54
74
63
77
90
68
90
53
70
77
Communication with Clients
The relationship with our customers is in a framework of transparent marketing
processes, timely responses and ongoing feedback, all this accompanied by the attitude of
service that has always characterized us.
In addition to providing customers information and news about the business and
operation, the various channels of communication can also be used to make requirements
or requests. We have, for example, an Electronic Operations Bulletin so that our
customers and the SSPD can access updated information in real-time about the operation
of the natural gas transmission system.
Handling of requests, complaints and claims
2010
2011
2012
Number of requests
7
9
30
Number of requests resolved
7
9
27
Average time to resolve requests (days)
15
10
6
Number of complaints and claims
99
61
54
Number of complaints and claims resolved
99
61
54
4
5
8,5
Average time to resolve complaints and claims (days)
34
Our Challenges 2013


35
Expand the gas infrastructure required to meet the new demand and expansion of
projects.
To disseminate to our customers our focus on sustainability.
Safe and Healthy Environment
Integrity of the Gas Pipeline
One of the cornerstones of our operation is the Infrastructure Integrity Management
System, which includes all the inspection, prevention and detection activities necessary to
assess and mitigate the risks to which it is exposed.
In 2012, following the two strong and ongoing La Niña phenomena that hit the country,
we updated the assessment of integrity risks. In addition, we executed construction works
such as variants, deepening the pipeline and construction of geotechnical protection
works in critical segments affected by the effects of heavy rains.
Risk Mitigation Plans in Areas of High Consequence
As part of our integrity management plan, areas of high consequence have been identified
where a leak or rupture could severely affect neighboring communities. In these areas
special preventative actions are carried out in additional to routine activities.
We continue with the daily preventive inspection programs of the right of way in urban
areas. In parallel, we advance preliminary designs and budget estimates for the
construction of bypasses that will allow us to avoid the most critical high consequence
zones of the trunk gas pipeline. With this information, in 2013 negotiations will be carried
out with the regulator to seek approval for these investments.
Infrastructure incidents
Incidents (number)
Grade 36
Grade 27
Grade 18
No emergencies generated
2011
2012
0
0
10
10
2
2
25
10
The grade 3 emergencies were:
 Leak in the Caracolí - Cartagena section due to a fault an electrical transmission line.
6
Grade 3 emergencies are those which require immediate, massive and total intervention of the external and internal
resources of Promigas.
7 Grade 2 emergencies are those which require internal or external resources of Promigas, which are partially activated.
8 Grade 1 emergencies are those which cannot be controlled with minimum resources.
36

Fault in the Palermo - Caracolí gas pipeline at the sub-fluvial crossing of the
Magdalena River, opposite Cabica island. This was an unprecedented event, the
result of an extreme event that did not generate a gas leak.
Physical Security
Due to the expansion of our gas pipeline we hire personnel from private security
companies and we have agreements with public authorities to ensure the safety of the
infrastructure, staff, contractors and surrounding community, an activity carried out in the
context of respect for the national and international guidelines on human rights.
Occupational Health
At Promigas we have various programs to maintain a safe and healthy environment for
our employees, as part of the Occupational Health and Safety Management SystemOHSM-certified under OHSAS 18001.
As part of the identification of hazards and assessment of OHSM risks, we establish
specific operational controls, plans and programs for each one.
Preventative and Occupational Medicine
The Diagnostic of Health Conditions is carried out annually, based on which the priorities
are set for risk factors that can lead to occupational diseases for workers, and the
necessary Epidemiological Occupational Surveillance Systems are designed.

Prevention of the use of psychoactive substances: as required by law, in 2012 we
began the implementation of this program in its first phase, during which
awareness campaigns were carried out aimed at all workers. Additionally random
alcohol breath tests were carried out with officers who are responsible for the
safety of others.
 Health Club: the health promotion program aimed at our staff and their families
was strengthened, with an educational and fun focus, in order to get more closely
involved with the health of employees, and create a culture of self-care and to
reinforce healthy lifestyles with nutrition, exercise, wellbeing and alcohol
prevention programs.
37
Absenteeism rate
9
Time lost (hours)
9090
Workable time
(hours)
719 225
Number of
workers
33210
Rate
1.26
Hygiene and Industrial Security
In compliance with the program of environmental, occupational health and safety
inspections, we also carry out HSE inspections every two months in different workplaces,
to identify and assess the current or potential risk factors (physical, chemical, ergonomic,
electrical, fire, mechanical, among others). This program has contributed to reducing risk
conditions and strengthening the culture of self-management.
Control of High Risk Areas
In order to reduce the risk of accidents, we implement management programs focused on
the safe handling of high-risk tasks that are carried out in our operations.
In 2012 our efforts were focused on risk control activities that involve the lifting of loads,
working at heights and handling chemicals. As a result of the implementation of these
programs HSE standards were established that are included in the operating procedures.
Training was also given to workers exposed to risk.
Work accidents collaborators
Total accidents
Incapacitating accidents
Rate of accidents (number of accidents / total number of
employees) x 100
Frequency rate (number of incapacitating accidents / man hours
worked) x 200 000
Severity index (number of lost labor days / man hours worked) x 200
000
Disabling injuries index (DII) (severity index x frequency rate/1000)
Total number of days lost in the year due to injuries
9
2010
7
1
2.2
2011
6
2
1.8
2012
11
5
3.3
0.28
0.57
1.97
0.28
3.13
16.85
0.00008
1
0.00178
11
0.033*
60*
In 2012 the NTC-3793 guide for calculating and recording the rate of absenteeism was adopted. The most significant
change relates to counting only days lost due to medical incapacitation and not calendar days, as was previously done.
10 Average collaborators per year.
* The increased rate of disabling injuries and the number of days lost to disability is due to a specific event that occurred
with one of our collaborators, which was classified as severe and resulted in 44 days of disability.
38
Strengthening of the Health and Safety Culture
We understand that the creation of culture is the fundamental support required to
achieve a safe and healthy environment and that the role of our people is vital.
The training program is put into practice annually, taking into account the needs in the
identification of hazards and risks, causes of incidents and accidents, non-compliance and
inspection results, among others.
We currently have 25 trained HSE leaders, who carry out the management of safe
behavior by observation of 8 related standards based on, among others, handling cargo,
handling of chemical substances, conservation of hearing, order and cleaning, driving of
vehicles and safe handling of tools.
The 2011 safe behavior trend was maintained, reporting a percentage of 96%, higher than
the proposed target of 90%.
Forming HSE leaders
This program aims to involve the children of our staff in strengthening the safety culture,
planting the seeds of positive attitudes and behaviors toward a safe and healthy
environment so that they replicate the concepts in their homes.
In 2012 the first module was structured and launched with the objective of teaching the
participating children HSE leadership concepts. 38 children from Barranquilla, Riohacha,
Sincelejo and Cartagena assisted.
Safety in the Community
Committed to the safety of the communities in the area of influence of our operations, we
complement the integrity management of our infrastructure with various relationship and
training strategies that seek the prevention and proper handling of risks to the
community.
39
Preparation for Actions in the Case of an Emergency
Given the climatic situation over the last two years, the contingency plan was updated to
include issues related to natural hazards caused by heavy seasonal rainfall. As a
consequence, we identified the places with the most critical risk and carried out
preventive outreach sessions there aimed at the community, in coordination with local
authorities (municipalities and risk management offices) and relief agencies.
We conducted two planned drills in the transmission system and distribution network
with the active community participation of the Simón Bolívar neighborhood in
Barranquilla and the Santa Cruz neighborhood in Santa Marta, with the authorities, relief
agencies, contractors and affiliated companies of the Apell Group.
In addition, we led a table simulation11, in order to strengthen our risk management
program, in which we take a possible incident in the section of pipeline located
provisionally on the Laureano Gómez bridge as a scenario. The simulation involved the
collaboration of companies, relief agencies, law enforcement, transit authorities, the coast
guard, and other important municipal and departmental actors.
The results of this exercise were the definition of the operational plan for managing this
type of emergency in coordination with relief agencies, authorities and Promigas;
identifying necessary resources, and the establishment of an operational improvement
plan in the section of the gas pipeline.
Preventive Information Program
For the last 12 years we have developed this program in order for the population of the
area of influence of the gas pipeline to understand the importance of preventing damage
to our infrastructure and the coordinated, effective action in case of an emergency.
The essential part of this program is the transfer of knowledge to communities through a
participatory process by which they themselves identify threats and the actions needed to
counter them. The municipal authorities are also given cartographic information showing
the gas pipeline route to prevent infrastructure projects that may violate the right of way.
During the year the risks associated with emergencies caused by the recent rainy season
were emphasized. At the same time the local and regional entities as well as the
community were given the risk management plan, the updates of the risk analysis of the
Promigas Contingency Plan, and the study: "Response Capabilities of Regional
11
Group work where each attendee presents their strategy for the control of the simulated emergency.
40
Governments and Society to Disasters in the Colombian Caribbean Region: A proactive
approach", developed by the Promigas Foundation in partnership with the University of
Cartagena, was delivered to municipal and departmental risk management offices.
Preventive information Program
Municipalities worked on
Communities covered
Workshops held
Workshop attendees
Authorities trained
Houses visited
People informed
Investment
2011
2012
42
277
163
3081
251
13 678
39 592
COP 670,203,055
55
158
138
3492
456
394*
1607*
COP 503,388,057
* In 2012 the management of priority information is focused on workshops. Visits to the homes will resume again in
2013.
Our Challenges in 2013


41
Reduce the health risk of the staff of the Main Control Center and the control
rooms of the stations, by implementing a fatigue management program.
Contribute to strengthening the health and safety culture in the homes of
employees through training and awareness processes with their children.
Integral Human Talent
Our Human Management Model
Has the objective of enabling the achievement of the corporate strategy and to maintain a
strengthened organizational culture in line with our values. In this framework, we work to
make sure our people develop the skills required in their work, personal and professional
conduct, stay motivated, reflecting a strong sense of belonging and undertake projects
which foster the consolidation of our company.
We focus on the integral development of our people in their intellectual, emotional, social
and physical dimensions.
Developing Competencies
Our competencies model includes the corporate skills which are applicable to all staff of
the organization, and those of their position, which include technical and leadership skills.
Corporate.





Focus on excellence
Focus on sustainability
Customer Orientation
Focus on occupational health and industrial safety
Respect for the environment
Of their position:
 Technical
 Leadership:
 Results oriented
 Provide timely feedback
 Development of others
We evaluate our human talent12 with respect to the established competencies for the
position, which allowed us to find opportunities for their improvement and to structure
individual and collective growth plans which promote the reduction of any gaps between
the actual and expected levels.
12
360° assessment system, when the person evaluates himself and is evaluated by their immediate superior, their
employees and their peers. 270° system for staff that are not in charge of people.
42
In 2012:
 We include "Focus on sustainability" in the corporate competencies, due to the
importance given to this approach, as it touches every area of the business and the
need to define behaviors that foster a balance between economic, social and
environmental components.
 We optimize the behaviors associated with the competencies, defining those that
provide greater strategic value to the company and our people.
The competency assessment exercise for 2011, conducted in the first quarter of 2012, was
applied to 300 people (100% of the target population) of the organization. An average
score of 87.5% was obtained, exceeding the target of 80%.
In line with the results of this evaluation and the feedback exercise (conducted by the
immediate superior), we design and implement the training program with an holistic
approach that takes into account the four dimensions of the human being. In 2012 a total
of 15,807 hours of training were completed, benefiting 37813 workers, with an investment
of COP 591,861,845.
We highlight the following initiatives:


Coaching: the program which started in 2011 was completed. It benefited the Vice
Presidents, Managers and Coordinators of the company with the aim to improve
their knowledge, skills and attitudes and to strengthen their leadership skills. In
2012 it covered 37 professionals of the company, of which 28 completed it by year
end.
Qualification and certification for technical personnel who perform critical tasks:
we expand the coverage of this program, initially aimed at workers, including
contractors as beneficiaries, through the evaluation of the critical tasks performed
by them. In 2012 we evaluated 52 employees of contractors who provide services
to the Maintenance Department, establishing an improvement plan that aims to
certify them in 2013.
With regards to Promigas employees, the engineers of the Main Control of Operations
Management were recertified. Training was implemented in Maintenance
Management and the reinforcement of those people who were identified as requiring
it as a result of the qualifications obtained in 2011.
13
The number of employees includes those who retired during the period and hence exceeds the total number of staff
at the end of 2012.
43

Higher education: we contribute so that our workers perform their
technical/technology, undergraduate and post graduate14 studies, thus supporting
their intellectual dimensions and qualifications of their competencies.
Scholarships for employees
Technical/Technology
Undergraduate
Post graduate
2009
2010
2011
2012
1
12
4
13
6
Average hours of training per employee, according to
organizational level
Senior Management (President and Vice Presidents)
Managers and Coordinators
Professionals
Technical and Administrative Assistants
Service Assistants
2
15
4
3
23
7
2011
2012
45
108
85
112
9
64
71
49
31
10
Wellbeing
We promote wellbeing activities that help strengthen corporate values and the
integration of our people and their families.
We also offer benefits in the areas of health, housing and education, which are set forth in
the Collective Agreement and the Collective Agreement for non-unionized employees.
Area
Health
Education
Housing
Main benefits offered
Health policy that includes medical consultation, inpatient treatment for
workers and medical services policy for family members.
Scholarships for collaborators and their children, annual educational aid for
each child and student loans.
Loans for house purchases, mortgages and home improvements.
Benefits
Salaries and legal benefits
Supplementary Benefits and Compensations
Medical services and medicine
Hospitalization and surgery insurance
Worker education
2011
(figures in pesos)
30 740 742 468
6 467 364 560
605 274 423
1 623 157 587
110 774 663
14 For post graduate studies, Promigas provides 70% of the respective cost.
44
2012
(figures in pesos)
33 208 774 072
5 255 268 049
627 641 487
1 714 779 614
161 323 634
Other benefits and compensations
Contributions to Funds (Employee Fund and Fimpro)
Training
Wellbeing
Benefits for families of employees (health, education,
recreation and culture)
Temporary contracts
Recruitment Cost
Total
795 540 121
1 114 882 680
688 510 374
210 537 703
842 213 062
1 146 792 754
592 263 395
211 766 917
681 740 300
676 252 949
583 568 678
63 957 510
43 686 051 067
676 968 523
44 777 484
45 158 821 940
Through the Promigas Employees Fund-Promifondo-resources are channeled for the
provision of other services and the development of activities, among which sporting and
recreational events stand out.
Fimpro
We continue to support the savings culture among our employees through the Fimpro
Voluntary Institutional Pension Plan administered by Porvenir.
At the end of 2012, out of 360 workers on a permanent contract 253 belonged to the plan,
equivalent to 70% who are benefiting from this saving scheme.
Contributions company
Contributions employees
Alternative return accumulated Fimpro 2012
COP 1 814 370 252
COP 2 267 408 529
14.31%
Figures provided by Porvenir
Corporate Culture
The purpose of our human management is to consolidate the ideal corporate culture for
implementing the business strategy of the company.
Taking into account that Promigas culture is centered on values, in 2012 we advanced an
internal campaign to promote and internalize values among our workers, through
awareness and outreach activities for implementation. This campaign will continue in
2013 and its impact will be reflected in the behaviors consistent with the values, in the
reduction of violations of our Code of Conduct, in the evaluation of culture and
measurement of the Company climate.
Promigas Values
 Respect
45




Integrity
Excellence
Solidarity
Leadership
Internal Communication
Primary Groups
This initiative, based on periodic meetings of heads of departments with their immediate
collaborators, has contributed to internal communication, by ensuring a space for formal
interaction to share topics of interest to the organization, track pending activities, review
indicators, analyze improvement opportunities, strengthen values and open a channel to
express concerns and expectations.
The primary groups have emerged as a participative scenario to transmit business
information and provide ideas for improvement, growth and development of the same.
Interactúa
Interactúa is the name given to our Corporate Intranet, the important channel for our
internal communications.
Given its importance and to be in line with global trends in internal communication, in
2011 we identified the need to enhance the tool. A study was conducted with the support
of a specialist consultancy, with the participation of more than 250 employees, who
provided recommendations and opportunities for improvement.
As a result, in 2012 we implemented a new technology platform. It has evolved from being
a content management portal to a corporate portal which facilitates greater collaboration
and interactivity. In 2013 it is scheduled to be launched, after training has been provided
to all users.
Somos Solidarios (We Care) Program
Its objective is to promote the participation of the members of our staff in social projects
that are aimed at improving the quality of life of at risk communities, either by sharing
their knowledge, managing resources, providing contacts or making cash contributions. In
2012, we increased the number of volunteers by 20%.
46
This program continues to support initiatives that benefit the communities surrounding
our operations, such as entrepreneurship for young students from public school in grades
9, 10 and 11, health programs for children with heart disease and education to foster
habits of organization, order and cleanliness in the school community.
Program
Beneficiaries
Jóvenes + Emprendedores 26 students
(Young + Entrepreneurs)
Corazoncito Ñero (Little
Heart Program)
Ambiente Saludable
(Healthy Environment)
Contribution
COP 37 million for the
establishment and strengthening of
their microenterprises
COP 40 million
20 children from the Colombian
Caribbean coast
120 children, 13 teachers and
representatives of parents of
the Semillas de Amor de
Timoteo kindergarten, in
Riohacha (La Guajira)



Training in the 5 "S"
methodology
Employee Participation of
employees in days of cleaning
and housekeeping
Donation of items
We emphasize the participation of some of the lawyers from the Company Secretariat of
Promigas in the Probono Foundation, whose purpose is to help people who due to their
economic situation do not have access to legal counsel to resolve their cases. Promigas
assumes the cost of membership and logistics, especially the time required for its officers
to find solutions that customers need. Promigas is the first company in the country that is
not part of the legal service industry to join the Foundation.
Collaborators breakdown
Collaborators by contract
type
Indefinite term
Fixed term
Hired labor
Total
Number of employees by
organizational level and
gender
Senior Management
(President and Vice
Presidents)
Managers and Coordinators
Professionals
Technical and Administrative
47
2010
Number
%
322
96.70
10
3.00
1
0.30
333
100.00
2011
Number
%
317
97.84
6
1.85
1
0.31
324
100.00
2012
Number
%
333
96.24
12
3.47
1
0.29
346 100.00
2010
2011
2012
Male
Female
Male
Female
Male
Female
5
0
5
0
5
0
27
83
93
15
56
39
29
83
90
14
53
40
30
83
105
14
61
38
Assistants
Service Assistants
Total
15
223
0
110
Number of employees, by age group
From 18 to 30
From 31 to 40
From 41 to 50
From 51 to 60
Over 60
Total
Average age (years)
2010
0
113
2012
66
101
87
65
5
324
41
75
104
86
76
5
346
41
2011
12.64
2012
13.15
2010
13.28
2011
295
10
13
13
2
333
2012
290
6
13
13
2
324
2011
Number
%
10
233
2011
2010
Number of employees, by geographic
location
Barranquilla (includes Magdalena District)
Riohacha
Cartagena
Sahagún
Bogotá
Total
2010
Number
0
107
70
107
83
71
2
333
40
Number of employees, according to length
of service ranges
Average time with the company (years)
Collaborators by benefit
groups
Non-unionized collective
agreement
Comprehensive Salary
Collective Agreement for
unionized collaborators
Total
10
217
297
21
13
13
2
346
2012
Number
%
%
237
72
230
71
248
72
88
26
87
27
91
26
8
2
7
2
7
2
333
100
324
100
346
100
Staff turnover
Collaborators who left their jobs, by age
range
From 18 to 30
From 31 to 40
48
2010
2011
7
2
2012
4
8
4
5
From 41 to 50
From 51 to 60
Over 60
Total
2
1
0
12
Collaborators who left their
jobs, by organizational level
and gender
Senior Management
(President and Vice
Presidents)
Managers and Coordinators
Professionals
Technical and Administrative
Assistants
Service Assistants
Total
2010
Male
4
4
2
22
5
0
2
16
2011
Female
Male
2012
Female
Male
Female
0
0
0
0
0
0
0
5
1
1
2
0
3
7
2
7
1
3
3
2
0
7
1
2
0
8
0
4
3
5
0
17
0
10
0
6
2010
Turnover rate
2011
3.67
2012
6.73
4.81
New hires
New hires, by organizational
level and gender
2010
Male
Senior Management
(President and Vice
Presidents)
Managers and Coordinators
Professionals
Technical and Administrative
Assistants
Service Assistants
Total
New hires, by age range
From 18 to 30
From 31 to 40
From 41 to 50
From 51 to 60
49
2011
Female
Male
2012
Female
Male
Female
0
0
0
0
0
0
0
8
0
4
1
6
1
2
0
10
0
12
9
2
1
2
16
0
0
17
0
6
0
8
0
5
0
26
0
12
2010
2011
17
6
0
0
2012
7
3
2
1
22
10
4
2
More than 60
Total
0
23
Promotions
2010
0
13
2011
4
0
38
2012
15
10
Our Challenges in 2013



50
Consolidate the organizational culture based on the cultural assessment
evaluation.
Align the processes of human management with a focus on the competency model
Strengthen the focus on the sustainability competency.
Environmental Responsibility
System of Environmental Management
We have an Environmental Management System certified under ISO 14001, which guides
our commitment and allows us to act in harmony with our operations and the
environment. Through this we identify and value the potential environmental impacts of
our projects and we monitor activities that may cause a significant impact to the
environment.
We have identified that the most significant impacts of our operation are the generation
of waste, soil removal and relationship with owners, communities and authorities.
In 2012, Promigas invested approximately COP 1,350 million in environmental
management.
Waste Management
Waste generation is one of the significant impacts of our activities, so we have a Plan for
Integrated Waste Management that establishes guidelines for the reduction in the source,
reuse and recycling.
In 2012, due to the significant increase in special construction projects and gas pipeline
covering, solid waste increased compared to 2011, increasing from 10 to 120 tons, which
were managed by authorized companies.
This year began with the consolidation of the amount of waste generated and disposed by
our significant contractors during the execution of activities for Promigas. This initiative,
formalized in the HSE Manual for Significant Suppliers, seeks to exercise greater control
over the waste produced in our operation, to track and identify opportunities to make
improvements to their proper management, thus becoming a key link in the value chain.
Of the total registered waste in 2012, about 20% is waste handled by contractors.
Waste Generation and Disposal
Type
51
Description
2010
2011
2012
Management
Ordinary
waste
Recyclable
waste
Hazardous
Waste
Paper,
newspaper
and
cardboard
Electronics
Oils
Solids
contaminated
with
hydrocarbons
or chemical
substances
Hospitals and
similar
(tons)
243.74
(tons)
244.93
(tons)
238.26
9.01
1.91
3.52
0.35
1.02
0.49
1780.94
2661.56
44.77 *
28.06
10.48
120.26 **
0.03
0.021
0.02
Delivered to the public
sanitation service for disposal.
Delivered to recycling
cooperatives in Barranquilla
and Riohacha for their reuse.
Delivered to authorized
companies for recycling or
destruction.
Managed separately. Controls
are put in place to prevent
spills or leaks.
Sent to be reused by third
parties.
Managed separately. Controls
are put in place to prevent
spills or leaks.
Sent to third parties for
incineration.
Sent to third parties for
incineration.
* The decrease is because in 2012 the Ballena Station was excluded from the measure, the station is owned by Promisol
(Promigas related company).
** The increase occurred because in 2012 more solid waste was generated in our operations, due mainly to the project
to change the covering on more than 35 kilometers of our trunk gas pipeline. This waste is equivalent to 67% of the
reported total.
Soil Removal
Removal of soil and vegetation
Number areas (construction, maintenance, etc.) with removal
of soil and vegetation) (km)
Total areas with removal of soil and vegetation (areas of
considerable significance) (km2)
2011
2012
14.30*
34.95**
0.21
0.52
* The increase in the number of areas reported in 2011 was corrected due to an inconsistency in the calculation: in the
covering change project a strip on land on average 15 meters wide is required.
** The increase in the number of intervened areas is mainly due to the project to change the covering of more than 35
kilometers of our trunk gas pipeline.
Noise Emission
The operation of compressor stations is the source of the highest noise levels. That is why
we conduct regular noise measurements, build fences, have a plan to maintain and
update equipment, to facilitate the control of levels to make sure they are within the
limits defined by law and to minimize the effects on communities living near the stations.
52
In 2012, in the Palomino Station, the installation of a backup compressor unit began,
energy generating equipment was replaced for other power generators with microturbine
technology and the installation of noise barriers were installed in order to improve the
noise levels, thus complying with the policy parameters.
Energy Management
Our primary energy consumption is directly through natural gas, which is used for the
functioning, among others, of combustion engines, compressors, plants and electricity
generators. The other type of power consumption is electrical energy which decreased by
199,843 kWh compared to 2011.
Direct energy consumption by
primary sources
Gas natural (m3)
2011
2012
2181.11
5755.09*
* The increase in power consumption is because during 2012 compression equipment in the Palomino Station operated
1.3 times more compared to 2011.
Indirect energy
consumption broken
down by dependencies
Office 1 (administrative)
2009
(kWh)
2010
(kWh)
2011
(kWh)
2012
(kWh)
2 215 170
1 785 280
1 870 161
2 155 603
Office 2 (administrative)
411 675
378 304
384 120
474 200
Sahagún Station
163 270
118 550
125 040
135 074
La Heroica Station
247 930
214 743
203 430
237 260
Arenosa Station
119 917
143 078
86 876
176 149*
Caracolí Station
151 140
329 352
160 019
174 180
3 309 102
2 969 307
2 829 646
2 629 803
Total
* Sandy Station had the highest increase in indirect energy consumption compared to the previous period, mainly due to
the completion of special works.
We have a bank of batteries that work with solar power for the operation of data
transmission equipment, located along the natural gas transmission system in the
Caribbean Region, both in rural and urban areas.
Total amount of renewable energy generated
Solar energy
2011
(kWh)
2398.59
2012 *
(kWh)
2569.92
* During 2012 there was an increase of 7% in the number of solar panels used for the operation of the SCADA system
(telecommunications).
53
Water Management
The majority of water consumption takes place in the administrative offices for garden
irrigation and sanitary use.
Thanks to the work focused on the collection, storage and reuse of rain water from the
Sahagún Station and the installation of water saving toilets in the Palomino Station, we
have achieved a saving of 42% in the total consumption of groundwater from these two
stations.
Total water
collection by source
Deep well
Municipal water
company
(administrative
office)
2009
(m3)
2096.7
2010
(m3)
1692
2011
(m3)
1260
2012
(m3)
736.3
29 285.4
28 292.7
20 512.3
21 475**
Form of registration and
control
Daily measurements and
control in pumping*
Continuous measurement
and use of energy-saving
devices
* Capturing with measurements approved by the environmental authorities. Applies to the Sahagún and Palomino
stations.
** 70% of the consumption is to irrigate green zones.
Total discharges of sanitary
wastewater
Sanitary wastewater (administrative
offices)*
Sanitary wastewaters from the
stations (Palomino, Sahagún,
Arenosa, Caracolí)
Total
Destination
2011
(m3)
2012
(m3)
Sewage system
6153.69
6442.5
Infiltration into
the subsoil
643.86
574.88
6797.55
7017.38
* The volume of discharge in the administrative offices is estimated taking into account that 30% of the consumption of
water taken from the municipal water company is returned as discharge.
Emissions Management 15
The main emissions generated in our operation are CO2, mainly from fuel combustion in
stationary and mobile sources, and methane, generated by controlled venting and some
leaks from the natural gas transmission system.
Fuel Consumption
15Includes
54
all aspects that generate emissions: fuel consumption, venting and leaks.
In 2012 emissions increased as a result of the increase in the consumption of fuel, due to
the operating time of the Palomino compressor station.
Total emissions (direct and indirect) from greenhouse
gases
Private hired transport*
Own Energy processes
2011
(tons CO2)
739.55
6829.95
2012
(tons CO2)
855,78
18 021.55
* In hired private transport only emissions from vehicles hired by Promigas (Renting Colombia contract) are included;
emissions generated from vehicles of contractors are not included.
Carbon dioxide emissions (CO2)*
Total
2008
(tons)
4383.00
2010
(tons)
16 684
2011
(tons)
6829.95
2012
(tons)
27 566.16**
* Calculated based on the fuel consumption for the operation of compressors and air conditioning, and operation of
vehicles
** The increase in CO2 emissions is mainly because during 2012 the compression equipment of the Palomino Station
operated 1.3 times more compared to 2011 (See Direct energy consumption by primary sources).
Controlled Venting and Gas Leaks
Gas leaks are prevented by strict maintenance plan implemented through integrity
management system (*). However, sometimes they may occur, either due to external or
internal causes, and emergency and contingency plans are put into place.
(*) More information in the Safe and Healthy Environment chapter
Methane emissions (CH4)*
2012
(tons)
Emissions generated during events related to controlled venting and
leaks in the transmission and distribution system.
855,94
* Estimated information based on leakage and venting events presented throughout the year.
Our Challenges in 2013

55
Continue to strengthen the environmental culture within the organization and
with external stakeholders.
Sustainable Suppliers
Mobilizing the Economy through Our Purchases
During 2012, 1091 suppliers and contractors of goods and services participated in the
development of our business management, with contracts worth COP 224,149 million,
which were mainly allocated to the:
Construction of gas infrastructure - 26.39%
Purchase of appliances, gas appliances and building materials, among other similar items,
through the Brilla program - 25.01%
Maintenance of the Gas Pipeline System - 20.33%
Technical, financial and administrative advice - 10.02%
Type of suppliers
2012
(number)
Of goods
Of services
Total
Investment in purchases
Amount of purchases (goods) - Millions of pesos
Amount of purchases (services) - Millions of pesos
Total amount - Millions of pesos
231
860
1091
2009
41 416
114 284
155 700
2010
11 839
110 902
122 741
2011
66 438
92 030
158 468
2012
33 128
191 021
224 149
Unique Supplier Register
The register applies to those suppliers offering significant goods and services16, or to those
whose significant purchases during the year are greater than or equal to 600 SMMLV
(minimum legal monthly salary in Colombia). In 2012 Promigas had approximately 50
significant service providers, who have generated approximately 810 orders worth COP
66,183 million.
16
Are those suppliers who perform activities with significant impacts or risks that may affect the environmental or safety
and occupational health performance of Promigas.
56
Local Suppliers
91% of our suppliers are national, 69.7% located in the Caribbean Region, which is in line
with our interest to contribute to the development of the regions where we operate.
Suppliers of
goods
2011
(amount of purchases in
millions of pesos)
2011
(number)
2012
(number)
Foreign
27
59 019
27
National
196
7418
204
Supplier of
services
2011
(amount of purchases in
millions of pesos)
2011
(number)
2012
(number)
2012
(amount of purchases in
millions of pesos)
12 758
20 370
2012
(amount of purchases in
millions of pesos)
Foreign
96
2789
71
3952
National
801
89 241
789
187 069
Suppliers according to
geographical location
(consolidated)
Foreign
National
National suppliers
Barranquilla
Rest of the Caribbean
region
548
145
19 616
98
993
2012 (number)
Caribbean Region
Rest of the country
From the Caribbean
Region
2012
(amount of purchases in
millions of pesos)
16 710
207 439
2012
(amount of purchases in
millions of pesos)
129 345
78 094
2012
(amount of purchases in
millions of pesos)
109 729
2012 (number)
693
300
2012 (number)
Business Conference
We participated in the design and conceptualization of the first business conference
organized by the Asociación Colombiana de Gas Natural -Naturgas- (Colombian
Association of Natural Gas), which served to encourage contact between buyers and
suppliers of goods and services in the industrial and commercial chain of natural gas and
57
to find out about innovations presented for medium and small businesses that might be
useful for the business.
Purchasing Process for Goods and Services
We have a Policy for Purchasing Goods and Services that guides our supply management
and includes criteria such as delivery, price, quality, service, technical performance,
manageability and health, safety and environmental practices.
In 2012 we made some adjustments to the process to make it more efficient and agile:


Standardization of the legal document "General Conditions" (Attached to the
purchase orders), by which the contracting of services is formalized, leaving as an
option to purchase additional support to commercial supply arrangements and
contracts. This reduced the legalization stage of purchasing by approximately 20
days and continues to ensure that it is both ethical and safe for both parties.
Decentralization of some types of purchasing of services not directly related to the
operation, so they are managed directly by the responsible dependencies
(expenses, taxes, small purchases, etc.). As a result the centralized procurement
process is freed up from handling approximately 994 orders per year.
Ethics in our Purchases
Business relationships with our suppliers are carried out in the context of ethics and
transparency, as such:




58
We have a clearly defined selection process that includes background checks;
establishing eligibility criteria; confidentiality in handling technical and economic
proposals; and a committee to purchase goods and services for monitoring,
evaluation and award of thereof.
We sign contracts with our suppliers in which we include provisions concerning
ethics and conflicts of interest.
We train suppliers and contractors periodically and virtually about our Code of
Conduct, in order to share these guidelines.
We disclose our Gifts Policy annually.
Health, Safety and the Environment practices of Significant
Suppliers
We inform our guidelines for health, safety and the environment to all suppliers and
contractors who provide significant services to our operation.


We require that they have an occupational health and safety system certified
under OHSAS 18001 or that they are registered in the Registro Único de
Contratistas del Consejo Colombiano de Seguridad (National Register of
Contractors of the Colombian Safety Council) with a minimum rating of 70% and
who have their own management plan for health, safety and the environment for
the execution of the contract that is reviewed, approved, monitored and audited
by Promigas.
We strengthen practices in health, safety and the environment by updating our
HSE Manual for Suppliers of Significant Services, which contains guidelines that are
contractual requirements in these areas. The updates include the report of key
performance indicators, such as industrial accidents, occupational diseases,
chemical spills, waste generation, fuel consumption, among others. They also
provide guidelines for HSE reports to be submitted at the end of the service.
Also, for operational control the review of HSE inspection plans is considered as
evidence of compliance with the contractual requirements, HSE field inspections and
annual audits of its annual monitoring management system, in order to establish
improvement plans and support its development.
 We involve them in activities to strengthen the culture of health, safety and
environment:
 As part of the QHSE Week we perform the third day of technical training in
HSE. The 46 participants received important information about our HSE
management model and updates and changes in national legislation.
 We carry out a training day for general service contractors of the
administrative headquarters, transferring best practices for the proper use
of chemicals, order and cleaning and working safely at height. 65 people
representing 30 contractor companies participate.
Our Challenges in 2013

59
Align the procurement process with the focus on sustainability.
Communities with Quality of Life
We work for Development
We contribute to improving the quality of life in the regions where we operate, directly
and through the Promigas Foundation, favoring the development of educational
communities and knowledge territories.
Thanks to its experience of 13 years, today the Foundation is a benchmark for social
innovation and knowledge management that with its initiatives has contributed to
important transformations in the communities, mainly related to the generation of
awareness about quality education.
Social Innovation
We know that social innovation is everyone's job, so we work to forge autonomous and
innovative regions that add value to their growth process.
In 2012, two of our projects, Jóvenes + Emprendedores (Young + Entrepreneurs) and
Lectores Saludables (Healthy Readers) were selected by the Centro de Innovación Social
(Center for Social Innovation) of the Colombian government, as part of their HILANDO
project, for its perspective on social innovation by improving the quality of life in
vulnerable populations, making them examples to follow with potential to be copied
across the country and in Latin America.
Promigas Talent Scholarships
With this scholarship program we aim to generate wellbeing and progress in society and
provide the Caribbean Coast a better quality of education. We offer the opportunity to go
to university for young graduates who have achieved excellent results in the ICFES test
and who do not have the financial resources to do so. The investment of Promigas in these
grants, which includes 100% of the tuition for the entire undergraduate course at the
Universidad del Norte, has been approximately COP 4,400 million since the program
started in 2005.
Development of Educational Communities
The belief that education generates development and equality is what motivates us to
strengthen educational communities and foster individual and collective skills in the
different actors involved in improving the quality of education.
60
Through its range of projects, the Foundation has worked with 507 educational
establishments, accompanying 2,469 teachers and administrators and indirectly benefiting
289,885 students. This was a clear contribution to achieving the improvement goals of the
education sector plan of the National Government and in particular the purpose of
transforming the quality of the education of the Ministry of Education.
Escuelas Gestoras de Derechos (Rights Promoting Schools)
Since 2009 in partnership with UNICEF we've worked with 45 schools located in rural and
indigenous areas of the departments of La Guajira and Córdoba, so the students of these
communities have access to the right of a quality education and to improve their skills.
This process highlights:




540 teachers and academic coordinators carried out actions to improve teaching
and learning processes and skills of the students.
183 parents linked to the educational institutions were trained and receive support
through the family schools.
Students of the educational institutions that benefitted strengthened their reading
and writing skills.
Ethnic education centers were empowered with the right to their own education,
from an intercultural perspective.
The support provided was aimed at strengthening the local education management,
institutional and classroom management, taking into account the context and the specific
educational needs of each department.
Bilingual and Intercultural Curriculum in the municipality of Maicao
This initiative, carried out in ethnic education centers in Riohacha and Manaure has being
implemented since 2011 in the municipality of Maicao, in the department of La Guajira,
benefiting 5 rural centers covering 69 rural communities. Its purpose is to develop the
capacities of these institutions to preserve the cultural identity of the Wayuu represented
in their worldview, language and social practices, among others. It is also strengthening
the capacity of interaction between actors from different cultures within the educational
environment.
Due to the commitment of the institutions, the project was extended to the secondary
education curriculum.
61
Escuelas que Aprenden (Schools that Learn)
This project is oriented at strengthening the capacity of the educational actors: technical
teams from the departments of education, management teams and teachers of
mathematics and languages.
It is currently underway in 41 educational institutions in the municipalities of Sabanalarga
(Atlántico), Montería (Córdoba), Neiva (Huila) and Cúcuta (Norte de Santander), the last
three in partnership with the Terpel Foundation. This work has been acknowledged by the
education departments as a strategy for improving institutions with poor results, which is
demonstrated by its impact on public educational policy.
Territorial Development
Through this strategy, the Foundation supports the strengthening of institutions and social
and economic capacities in areas of special interest to Promigas, accompanies the
deployment of public policies to encourage more active citizenship and promotes social
equity, especially in the education sector.
Accompanying the municipality of Pueblo Viejo as a ZIP - Zona de Interés Prioritaria
(Priority Interest Zone)
In joint efforts with the State and local governments, we work with the Directorate of
Private Social Investment of the National Agency for Poverty Reduction-ANSPE-, so that
the town of Pueblo Viejo has an educational institution that adds value the goals set with
families in extreme poverty focused on the Red Unidos (United Network). In 2012, we
made progress in the identification of public, private and community actors; their service
offerings and investments.
Jóvenes + Emprendedores (Youth + Entrepreneurs)
This innovative initiative, which has the backing of the Genesis Foundation, is looking for
educational institutions to strengthen their programs of general work skills so that
students in grades 9, 10 and 11 can manage their own businesses, thanks to the integral
accompaniment which allows them to grow as individuals and entrepreneurs. It also
contributes to public policies for reducing poverty, providing opportunities for
employability and income to at risk populations.
62
The results of the evaluation with 50 young people who participated in the program,
show:



67% of the business units created from the project and 94% of the existing units
that were upgraded are still operating two years after the project started.
42% of the businesses have monthly sales at or below the SMMLV (current legal
monthly minimum wage in Colombia), with 29% between one and three SMMLV
and 29% over three SMMLV.
82% of businesses have increased their sales and 32% of them have been formally
constituted.
Family Microenterprises
We contribute to the generation of income generation and to encouraging
entrepreneurship of the families in the regions where we operate. Focused on the lowest
housing levels, we provide training opportunities, advice and microcredit for a better
quality of life.
The goal is to strengthen micro businesses, leverage the government and other private
institutions programs for entrepreneurs, for a better articulation of the Government
poverty reduction programs.
In 2012 we supported 200 business units in the department of Magdalena, most of which
(74%) are in trading and are run by women. Repayment of loans is 87%.
Knowledge Development
This strategy is aimed at consolidating useful knowledge for the Foundation and other
social organizations. To achieve this we focus on our research program, communities of
practice and the systematization of experiences.
For this purpose we formed an alliance with the Asociación Colombiana para el Avance de
la Ciencia -ACAC-(Colombian Association for the Advancement of Science) whose mission
is to work for the promotion of science, technology and innovation as bases for national
development, which will encourage further exchanges and connections to our knowledge
products and its social application.
63
Projects, Research and Publications
Knowledge Transfers and Licensing to use our Methodologies
Aimed at strengthening the social performance capabilities of other organizations, we
transfer our knowledge and we grant the licenses of Escuelas que Aprenden (Schools that
Learn), to the Terpel Foundation and Lectores Saludables (Healthy Readers), and to the
Propagas Foundation in the Dominican Republic.
Featured Publications in 2012 17




Las Fundaciones Empresariales en Colombia: Una Mirada a su Estructura y
Dinámicas (Business Foundations in Colombia: A Look at their Structure and
Dynamics)
Capacidades de Respuesta de los Gobiernos Regionales y la Sociedad, Frente a los
Desastres en la Región Caribe Colombiana: Un enfoque propositivo. (Response
Capabilities of Regional Governments and Society, faced with Disasters in the
Colombian Caribbean Region: A proactive approach.)
Acompañamiento y Cambio Escolar: Elementos para su Comprensión y Aplicación.
(Support and School Change: Elements for Understanding and Application.)
Concepciones del Maestro sobre la Ética. (Teacher Conceptions on Ethics).
Supporting companies linked to Promigas
As part of its strategy to transfer knowledge, the Promigas Foundation has given support
to the companies related to Promigas in major projects and social programs. It supported
Gases de Occidente for five years in the implementation of the Escuela Lectora (School
Reading) program; Transoriente in the launching and implementation of the Healthy
Readers program, and Surtigas in implementing the diploma of directive management for
educational institutions in the Urabá region of the department of Antioquia.
Evaluation of the Impact of our Contribution to Education
According to the periodic impact assessments of the projects of the Promigas Foundation
in the municipalities of Pueblo Viejo (Magdalena) and Manaure (La Guajira), by external
entities, we highlight the following results:
17
•Research and publications of the Promigas Foundation are available in the Library section of the website
www.fundacionpromigas.org.co
64






Significant progress is noted in the performance of students belonging to
educational establishments who are project beneficiaries.
Improving the classroom performance of teachers.
Transversal reading processes in the courses other than languages.
Significant transformations in the attitudes of the community regarding the
importance of education.
Educational institutions strengthened by the curriculum development projects.
Strengthening wayunaiki.
Social Investment Promigas Foundation (in pesos)
Concept
2010
2011
Education
3 126 595 654
3 078 708 937
Economic and productive strengthening
243 646 343
263 160 394
Donations and contributions
1 234 535 935
1 077 774 671
Others
200 979 747
160 385 997
Total
4 805 757 679
4 580 029 999
2012
2 502 643 866
221 216 719
1 260 724 660
285 474 001
4 270 059 246
Reputation of the Promigas Foundation
With the support of a recognized specialist external firm a reputational study was
conducted with all the stakeholders, represented by, among others, the beneficiaries,
human talent, partners, suppliers, foundations and related companies of Promigas, to
assess the fulfillment of the goals set by the Foundation.
The corporate reputation index results were 9.35 out of 10, with the highest scores in
attributes that are associated to: principles and values, the ability to improve the quality
of education, generosity, humanity, commitment, people, improvement culture,
efficiency, reliability and thoroughness.
Relations with the Community in the Zone of Influence of the Gas
Pipeline18
Our gas pipeline is more than 2,300 km in length, and throughout the network there are
neighboring communities with whom it is essential to build and maintain long-term and
mutually beneficial relationships.
18
One of the main programs for the community in the zone of influence of the pipeline is "Preventative Information",
which can be consulted in the chapter "Safe and Healthy Environment".
65
We permanently respond to issues arising from the relationship between Promigas and its
neighboring communities. We are in charge of informing publicly and promptly all the
maintenance and operation projects and programs that could have an impact on the
community; and individual requests with particular emphasis on the prevention of risk and
conflict situations.
During 2012 a total of 29 communications of Petitions, Complaints and Reports-PCR-,
were received from communities of which 76% were preventative reports and related to
gas leaks, exposed pipes and activities of third parties.
2008
Petitions
Complaints
Preventative reports
2009
8
9
54
2010
3
4
25
2011
3
6
59
2012
10
6
47
3
4
22
The decrease in the number of complaints for damages caused by activities of the
company is notable, which were all resolved promptly.
Land Management
For expansion, construction and maintenance work land management is needed, which
involves indemnities, permits and easement19.
During 2012 important operating and maintenance projects that demanded agile and
efficient active land management, such as the construction of the bypass on the Laureano
Gómez bridge, changing the covering of gas pipelines and valve replacements, which were
carried out within the set time and parameters. This entailed a significant increase in
negotiations.
Permissions, claims, easements and
negotiations
Requests for permits and indemnities
Negotiations
Cost of negotiations
Legalized Easements
19
2010
2011
2012
180
82
COP 305 269 950
122
63
COP 244 251 691
37
24
103
227
COP 1 426 814
281
16
The permissions and compensations require a negotiation process depending on the affected area and the problems
that arise as a result of the operation. Negotiation of the easement is needed to ensure the right of way, three meters
to the side of the pipeline, in the interest of safety and care for the integrity of the infrastructure.
66
Cost of legalizations
COP 441 024 281
COP 329 731 456
COP 289 273 198
Relationships with Indigenous Communities
The Promigas transport system passes through indigenous territories of several
communities surrounding our operations, which we have historically maintained
respectful relations.
However, since December 2011, the company has had to negotiate differences with the
indigenous Wayuu communities arising from intervention in its territory, in the zone of
influence of the Riohacha - Maicao gas pipeline. Promigas acquired the property for this
infrastructure several years prior.
In 2012, agreements were reached with some of these communities, forcing us to
continue looking for points of understanding to bridge the gaps. We hope to continue to
count on the support and verification of the municipal and departmental secretaries of
indigenous affairs.
Our Challenges in 2013

67
Contribute to the strengthening of relationships with communities, through the
design and implementation of a program of social contribution in those of priority
interest.
Acknowledgements
We want to reiterate our gratitude to our shareholders for their invaluable support. To all
the people and companies linked to Promigas we are very grateful for your human
qualities, professionalism and great commitment.
Rules on Intellectual Property and Copyright
The company has made sure to use properly licensed software in all its processes. It also
complies with all the provisions relating to copyright.
José Elías Melo Acosta
President Board of Directors
Antonio Celia Martínez-Aparicio
President Promigas
NOTE: This report was read and approved unanimously by all directors at Board meeting
on February 19, 2013, as stated in the Act # 407 February 19, 2013.
Eduardo Rosado Fernández de Castro
Secretary
68