Oil spill in the Amazon: Ecuador fears impact on Coca hydroelectric plant

Ecuador has detected a new oil spill in a pipeline located in the Amazonian province of Napo, near its main hydroelectric plant, raising concerns over the country’s energy supply.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Ecuadorian authorities announced on March 22 that an oil spill had been identified in a pipeline running through Napo province in the eastern Amazon region. The Ministry of Energy stated that the cause of the spill was considered to be an act of sabotage, although the extent of the damage was not specified. This incident follows another pipeline rupture less than two weeks prior, which discharged approximately 3,800 barrels of crude oil into several rivers along the Pacific coast, affecting drinking water supplies for local communities.

Threat to hydroelectric infrastructure

The Ministry of Energy indicated that preventive measures were being taken to avoid contamination of the Coca Codo Sinclair hydroelectric plant, located near the Coca River. This energy complex, with a generation capacity of 1,500 megawatts, supplies around 30% of the country’s electricity demand. The plant is currently operating at 1,100 megawatts, but a decision regarding a possible temporary shutdown is expected within hours.

Electricity supply to remain stable

In anticipation of a potential shutdown, the ministry assured that thermal power plants and energy barges would be able to maintain supply across the country. This statement aims to prevent a repeat of the electricity shortages experienced in 2024, when the country faced outages of up to 14 hours a day due to an exceptional drought that severely impacted hydroelectric production.

A tense political context

Minister of Energy Inés Manzano stated that several acts of sabotage were targeting oil infrastructure in a tense electoral context. President Daniel Noboa, in office since November 2023, is set to face opposition candidate Luisa González in the second round of the presidential election scheduled for April 13. This political climate adds pressure on the government as the energy sector remains a major pillar of the national economy.

A strategic sector for the economy

Ecuador produces approximately 475,000 barrels of crude oil per day, according to figures for 2024. This resource is one of the country’s main economic drivers, generating export revenues estimated at $8.6bn for the year. Potential disruptions due to technical failures or criminal actions on pipelines could increase the vulnerability of the national energy and financial system.

The International Energy Agency’s “Current Policies Scenario” anticipates growing oil demand through 2050, undermining net-zero pathways and intensifying investment uncertainty globally.
Saudi Aramco cuts its official selling price for Arab Light crude in Asia, responding to Brent-Dubai spread pressure and potential impact of US sanctions on Russian oil.
The removal of two Brazilian refiners and Petrobras’ pricing offensive reshuffle spot volumes around Santos and Paranaguá, shifting competition ahead of a planned tax increase in early 2026.
Shell Pipeline has awarded Morrison the construction of an elevated oil metering facility at Fourchon Junction, a strategic project to strengthen crude transport capacity in the Gulf of Mexico.
An arrest warrant has been issued against Timipre Sylva over the alleged diversion of public funds intended for a modular refinery. This new case further undermines governance in Nigeria’s oil sector.
With only 35 days of gasoline left, Bulgaria is accelerating measures to secure supply before US sanctions on Lukoil take effect on November 21.
Russia is negotiating the sale of its stake in Serbian oil company NIS as US sanctions threaten the operations of the company, which plays a key role in Serbia’s economy.
TotalEnergies, QatarEnergy and Petronas have signed a production sharing contract to explore the offshore S4 block in Guyana, marking a new step in the country’s opening to operators beyond ExxonMobil.
India boosts crude imports from Angola amid tightening U.S. sanctions on Russia, seeking low-risk legal diversification as scrutiny over cargo origins increases.
The shutdown of Karlshamn-2 removes 335 MW of heavy fuel oil capacity from southern Sweden, exposing the limits of a strategic reserve model approved but inoperative, and increasing pressure on winter supply security.
The Bulgarian government has increased security around Lukoil’s Burgas refinery ahead of a state-led takeover enabled by new legislation designed to circumvent international sanctions.
Faced with US sanctions targeting Lukoil, Bulgaria adopts emergency legislation allowing direct control over the Balkans’ largest refinery to secure its energy supply.
MEG Energy shareholders have overwhelmingly approved the acquisition by Cenovus, marking a critical milestone ahead of the expected transaction closing later in November.
Petrobras reported a net profit of $6 billion in the third quarter, supported by rising production and exports despite declining global oil prices.
Swiss trader Gunvor has withdrawn its $22bn offer to acquire Lukoil’s international assets after the US Treasury announced it would block any related operating licence.
The Trump administration will launch on December 10 a major oil lease sale in the Gulf of Mexico, with a second auction scheduled in Alaska from 2026 as part of its offshore hydrocarbons expansion agenda.
The US group increased its dividend and annual production forecast, but the $1.5bn rise in costs for the Willow project in Alaska is causing concern in the markets.
Canadian producer Saturn Oil & Gas exceeded its production forecast in the third quarter of 2025, driven by a targeted investment strategy, debt reduction and a disciplined shareholder return policy.
Aker Solutions has secured a five-year brownfield maintenance contract extension with ExxonMobil Canada, reinforcing its presence on the East Coast and workforce in Newfoundland and Labrador.
With average oil production of 503,750 barrels per day, Diamondback Energy strengthens its profitability and continues its share buyback and strategic asset divestment programme.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.