Ecuador partners with CNPC in USD 78 million deal to double offshore gas output, boost energy security, and strengthen China ties.
Ecuador has moved forward with a significant step to reinforce its energy security through the signing of a USD 78 million contract with China National Petroleum Corporation (CNPC). The agreement centers on expanding natural gas production at the Amistad gas field, Ecuador’s sole offshore hydrocarbon block. Presently, the field produces approximately 20 million cubic feet of natural gas per day. The new initiative aims to double that output by upgrading existing infrastructure and introducing new offshore technology.
The project involves rehabilitating four offshore wells and installing a jack-up drilling platform, representing the first offshore drilling activity in Ecuadorian waters in more than a decade. Work is scheduled to commence in October 2025 and continue until May 2026. Once completed, the expanded output is expected to secure a more stable and reliable domestic supply of natural gas.
Amistad plays a vital role in Ecuador’s energy landscape, as its gas production powers Termogas Machala, the nation’s most important thermoelectric plant. This facility is crucial for maintaining electricity supply across the country. Government spokesperson Carolina Jaramillo emphasized that the expansion will guarantee dependable energy for both industrial and household consumers, while also reducing the likelihood of shortages. Moreover, by scaling up domestic production, Ecuador can cut down its reliance on imported fuels, thus lowering fiscal pressure and strengthening long-term energy independence.
Beyond the technical improvements, the agreement highlights the broader geopolitical relationship between Ecuador and China. Over the past decade, China has emerged as a major partner for Ecuador, financing a variety of projects across infrastructure, mining, and energy. CNPC’s involvement brings not only the financial backing necessary for large-scale offshore projects but also the advanced technological expertise that Ecuador has lacked in its offshore operations. This partnership could help modernize Ecuador’s energy sector, making it more resilient and diverse in the face of growing domestic energy demand.
Several media reports suggest that the deal could open the door for further rounds of investment and offshore exploration in Ecuador. The country holds considerable untapped hydrocarbon potential, and this project may serve as a precedent for additional development, technology transfers, and joint ventures. The strategic cooperation with CNPC underscores Ecuador’s ambition to position itself as a reliable energy producer in the regional market while also securing domestic supply.
At the same time, the contract strengthens Quito’s ties with Beijing, as China continues to expand its presence in Latin America’s energy and resource sectors. For Ecuador, this partnership is not just about meeting immediate energy needs but also about laying the groundwork for long-term cooperation, modernization, and energy diversification.
