As we strive to connect markets to sources of energy, especially natural gas, we generate value by building long-term relations and mutual benefits

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3 As we strive to connect markets to sources of energy, especially natural gas, we generate value by building long-term relations and mutual benefits with interest groups.

4 Promigas We are an organization with a Latin American presence, and for more than 40 years we have brought progress and wellbeing to Colombia by performing our activities effectively and responsibly. This has enabled us to play an active and important role in the process of making natural gas available on a mass scale in Colombia. We develop energy markets in Colombia and Latin America, directly and through our strategic transportation and distribution business groups (GEN). These consist, firstly, of organizations involved in the transportation of natural gas and Liquefied Natural Gas (LNG), the provision of integrated solutions for industry, and energy generation, and secondly, of natural gas distribution companies, electricity distributors and marketers, and the non-banking finance business. Promigas has led the natural gas revolution in Colombia, resulting in a positive economic, social and environmental impact.

5 WE TRANSPORT 43 % of the natural gas used in Colombia through more than 3000 kilometers of gas pipelines belonging to ourselves and to our carriers We provide services for hydrocarbon producers and big industries that include natural gas compression and dehydration, the construction of gas pipelines and interconnection lines, and energy solutions such as generation, cogeneration and selfgeneration. We recently entered the LNG business with our affiliate Sociedad Portuaria El Cayao (SPEC), which will process more than 400 Mpcd at a floating regasification terminal permanently anchored at a port on Cartagena Bay. This terminal, which is the first of its kind in Colombia, will enable electricity generating companies to meet their natural gas needs at times of peak demand. IN COLOMBIA we distribute natural gas to around 3.7 million users, 38% of the domestic market, meaning that we serve 16 million people,while we have over 480,000 users in Peru through our share in Cálidda. We operate and maintain approximately 26,000 kilometers of electricity distribution network, and supply electricity to around 350,000 users in 38 towns and villages in the southern part of the country. We have AAA ratings for issues in Colombia and BBB- internationally for IDR local and foreign currency issues. We have been involved in the Vehicular Natural Gas (VNG) business for more than 24 years. We pioneered a business that has positive economic and environmental impacts due to the very characteristics of this fuel, and we continue to search for new growth opportunities. We also hold ISO 9001 quality system certification, OHSAS occupational health and safety certification, and ISO environmental certification. We are also continuing with our expansion in Peru through our affiliate Gases del Pacífico, and will serve 150,000 users in the north of the country in the next five years. We are committed to the United Nations Global Compact and its principles, and to the Sustainable Development Objectives. We constantly review our activities and compare ourselves against the highest sustainability standards, such as the Dow Jones Sustainability Index, and this enables us to work on areas where room for improvement has been identified, with a view to improving the performance of our organization.

6 Our Businesses Colombia TRANSPORTATION BUSINESS GROUP 511 Employees USD 374 millon revenue USD 2713 millon assets Peru NATURAL GAS TRANSPORTATION INTEGRATED SOLUTIONS FOR INDUSTRY AND ENERGY GENERATION LNG Promigas Promioriente Transmetano Transoccidente Gas pipeline: 3,089 km Capacity: Mpcd 23 costumers in different regions of Colombia Promisol Enercolsa Zonagen Dehydration capacity: more than 650 Mpcd Installed compression capacity: 24,000 hp Cogeneration plants capacity: more than 60 MW Sociedad Portuaria El Cayao - SPEC Regasification capacity: 400 Mpcd Storage capacity: 170,000 m3 PROMIGAS IN 2016: It successfully placed USD 174 million in ordinary bonds. Issue oversubscribed 2.25 times. For the first time, it took out a USD 200 million syndicated loan, which was oversubscribed 1.95 times, involving 14 banks from different countries.

7 17 companies, 3200 employees, Colombia, Peru DISTRIBUTION BUSINESS GROUP 2698 Employees USD 825 million revenue USD 889 millon assets NATURAL GAS DISTRIBUTION ELECTRICITY DISTRIBUTION NON-BANKING FINANCE Surtigas GdO Gases del Caribe Efigas Gases de La Guajira Cálidda Gases del Pacífico Versa Accumulated users: 3.6 millones Gas sales: 9.4 millon m3 Colombia y Peru Compañía CEO Customers: 348,081 Energy required: 578 GWh Networks: 25,963 km Brilla Loans: USD 630 millon Number of users: 1,997,222 beneficiaries Portfolio: USD 168 millon Percentage of portfolio >60 days: 2.2 % NOTE. Figures prior to eliminations; revenue includes financial assets and participation method. GEN Distribution financial figures do not include companies that do not consolidate: Gases del Caribe (Efigas and Gases de La Guajira) and Cálidda. It was recognized as one of the 91 highly innovative companies in Colombia. For the fourth consecutive year, it won BV CIR recognition for its adoption of Best Corporate Governance Practices and its relationship with the different interest groups. In conjunction with our companies, we contracted a total of USD 186 million from 5,914 suppliers, who had an average performance rating of 90%. We invested over USD 721,000 in comprehensive health and education for our people.

8 Transportation Business Group NATURAL GAS TRANSPORTATION Gas pipeline length (km) Volume transported (Mpcd) Maximum capacity (Mpcd) Promigas Transmetano Promioriente ** 86.1*** Transoccidente ** Volume transported Gibraltar - Bucaramanga: 31.4 Mpcd. Volume transported Barrancabermeja - Payoa - Bucaramanga: 27.0 Mpcd. *** Maximum capacity Gibraltar - Bucaramanga: 49.9 Mpcd. Maximum capacity Barrancabermeja - Payoa - Bucaramanga: 36.2 Mpcd. IN 2016: Service reliability and continuity indices above 99.9%. In 2016, the total capacity of our transportation system was used 52%, on average, while the contracted capacity figure was 96% of installed capacity.

9 INTEGRATED SOLUTIONS FOR INDUSTRY AND ELECTRICITY GENERATION GNL Promisol provides agents in the hydrocarbons chain and other industrial sectors with integrated, reliable and competitive solutions through energy services, treatment of hydrocarbons and infrastructure services. Sociedad Portuaria El Cayao: First natural gas regasification plant in Colombia, which will enable electricity generating companies to meet their natural gas needs at times of peak demand. In the first half of the year, the extension of the South Loop Gas Pipeline (San Mateo - Mamonal Loop) commenced operation, enabling 95 Mpcd to enter the transportation system from fields on the southern part of the coast. The liquefied natural gas regasification terminal, run by our affiliate SPEC, commenced operations in December after the arrival at the terminal in November of the FSRU and the purchase of the first LNG cargo for the commissioning.

10 Distribution Business Group NATURAL GAS DISTRIBUTION Operation GdO Surtigas Gases del Caribe Accumulated users 1,050, , ,302 Number of towns / villages Potential market 1,349, ,031,670 Coverage (%) Effective Promigas share (%) Operation Efigas Gases de La Guajira Cálidda Accumulated users 509, , ,400 Number of towns / villages Potential market 664, ,466 2,327,400 Coverage (%) Effective Promigas share (%) million users (38% country) and a total of 650 towns and villages served by our distributors in Colombia. Gas sales: 9.4 million m3. Internationally, through our share in Cálidda, in Peru, over 90,000 new users were connected during the same period, making a total of 438,400 natural gas service beneficiaries. GASES DEL PACÍFICO Gases del Pacífico, the Promigas affiliate in Peru, will deliver natural gas to seven cities in the northern part of the country, providing 150,000 connections and becoming, in the long term, a strategic partner of the Peruvian government by helping it extend the benefits of using natural gas to areas outside Lima. The fuel will be transported in a liquid state (LNG) through virtual gas pipelines - in other words, tankers that will load from the LNG production plant and travel approximately 1,000 km. to the regasification stations in each town or city. After accumulated investments totaling USD 40,472 million from the time the concession was granted, this company will be ready to commence operations in July 2017.

11 DISTRIBUCIÓN DE ENERGÍA ELÉCTRICA FINANCIACIÓN NO BANCARIA INCOME BRACKET 4 1 % INCOME BRACKET 5 3 % INCOME BRACKET 3 16 % 41 % INCOME BRACKET 1 INCOME BRACKET 2 38 % CEO provides services in department of Cauca, in the southwestern part of Colombia. Brilla has now completed 10 years of making a positive impact with its non-banking finance service for homes in income brackets 1, 2 and 3 in Colombia. CEO CEO ended the year with an energy loss indicator of 16.3%, which is within the parameters established in the management contract. The company reported a 36% and 38% increase, respectively, in EBITDA and net profit.

12 Our comprehensive management with a sustainable approach Our management model takes on board the good practices and different world standards on matters relating to sustainable management that exist nowadays, and it takes into account the expectations of our interest groups. It is based on four fundamental cornerstones that guide our actions, in terms of our approach, and as far as implementation is concerned, coordinated with strategy, on issues that are relevant to our management, measurement and communication at corporate level. We are committed to the United Nations Global Compact and its principles, and to the Sustainable Development Objectives, which enable us to identify future growth opportunities, improve the value of company sustainability, use our resources in a more efficient manner, strengthen our relations with interested parties, and share a common language and a common goal. We have determined that the following SDOs are a priority for Promigas. OBJECTIVE 4. To guarantee fair, good quality, inclusive education and promote learning opportunities for everyone throughout their lives. OBJECTIVE 7. To guarantee that everyone has access to affordable, safe, sustainable and modern energy. OBJECTIVE 13. To adopt urgent measures to combat climate change and its effects. OBJECTIVE 15. To protect, reinstate and promote the sustainable use of land ecosystems, to manage forests in a sustainable manner, to fight against desertification, to halt and reverse the degradation of land, and to put a brake on the loss of biological diversity.

13 Financial statements GENERAL BALANCE SHEET 1 Figures in millions of USD (4) 2016(4) Assets Liabilities Equity (1) Consolidated Col GAAP figures stated in dollars at the final Recommended Market Exchange Rate for each year. (2) Consolidated Col GAAP figures stated in dollars at the average Recommended Market Exchange Rate each year. (3) EBITDA: Operating profit + depreciation and amortizations + provisions (4) Consolidated IFRS figures stated in dollars at the final Recommended Market Exchange Rate for each year. (5) Consolidated IFRS figures stated in dollars at the average Recommended Market Exchange Rate for each year. NOTE: Revenue and IFRS EBITDA include revenue from financial assets and participation method, and exclude revenue and costs relating to the construction of concessions. PROFIT & LOSS STATEMENT 2 Figures in millions of USD (5) 2016(5) Revenue Costs Operating Expenses EBITDA (3) INDICADORES POR NEGOCIO 2016 Figures in millions of USD Revenue EBITDA Net Profit GEN Transportation GEN Distribution Total Net Profit

14 Relations with the community We contribute to improving the quality of life in regions where the company s operations are conducted, through our social management practices. We work in association with strategic partners and allies, and are committed to quality education for life in order to boost development for man and for society. Promigas social investment of USD 1.8 million and USD 3.7 million in conjunction with our companies. Risk Management Training in provinces in the area of influence of our activities for communities, authorities and support entities, with emphasis on first aid, fire control and management, evacuation, and the correct use of emergency kits.

15 FUNDACIÓN PROMIGAS Unqualified local manpower hired for construction projects and maintenance work: approximately 80% of personnel from the area for executing unqualified manpower projects and 20% qualified manpower, with a view to achieving 100% unqualified manpower being hired. It initiated 107 initiatives for change with a presence in 61 municipalities, and directly assisted 333 education institutes and 1,176 teachers and teaching managers. These initiatives influenced 119,596 students. We can highlight the continued Use Licensing (Copyright) as part of the Healthy Readers initiative with the company Propagas in Santo Domingo, Dominican Republic. As a way of contributing to reinforcing public policy and better-informed decision making, the Guajira 360, Thought for Development Center was launched, in conjunction with Cerrejón, La Guajira Chamber of Commerce, and Fundesarrollo. Primary Health Care program, especially for Wayúu indigenous groups, and dealing with drought emergencies in 29 indigenous communities, to benefit over 3,000 people.

16 Environmental management We signed the Caring for Climate global compact, and we measured our environmental performance against the Carbon Disclosure Project (CDP). We hold ICONTEC greenhouse gas emission conformity certification under ISO standard for measurements The actions we are carrying out as part of our climate strategy include the Sustainable Mobility program, which aims to reduce our workers carbon footprint.

17 When the San Mateo - Mamonal Loop was being built, we removed 2,183 specimens of bromeliad, orchid and lichen from the work area and relocated them in a Forestry Reserve area covering 6.2 hectares, thus guaranteeing the survival of 93% of them and also increasing the total number of such specimens, with a 20% growth rate of new ones. We continue to take part in the Biodiversity and Development initiative headed by the National Industrialists Association (ANDI), with support from National Parks of Colombia and the Alexander von Humboldt Institute, the objective of which is to establish a public-private work arrangement that contributes to overall biodiversity management.

18 Our value proposal Leading position in the Liquefied Natural Gas (LNG) business in Colombia. The terminal operated to SPEC, one of our controlled companies, is in a privileged position for supplying LNG on a small and medium scale, enabling it to serve regional markets. Development of new market niches to increase natural gas service coverage. Pioneer in the use of Natural Gas for Vehicles (NGV) in Colombia. Business development with people at the base of the pyramid. For example, non-banking finance (Brilla) for those with no access to banking services.

19 Experience in administering users living under adverse economic conditions, with a consequent improvement in the living conditions of marginal population groups. Experience in natural gas regulation. Coordination of strategies with government to increase gas service coverage (mass availability, cross-subsidies, regional gas pipelines, etc.). Experience in natural gas regulation. Development of energy efficiency programs in conjunction with the industry, in order to improve competitiveness. Promigas is a long-term investor with a high degree of social awareness, and a strategic partner in the development of energy markets.

20 About Colombia Number of inhabitants Poverty percentage 49,021, % Total exports USD 31.0 billon Current Legal Minimum Salary USD 226 Inflation 5.75 % Unemployment 2016 average 9.2 % THE NATURAL GAS SECTOR IN COLOMBIA The mass availability of natural gas in Colombia began in the 1980s as the result of a joint initiative between government and the private sector, and continuous work since then has seen gas become the favorite fuel in Colombian homes and industries. Promigas has been present throughout this successful process, has played an active role in it, and has had the satisfaction of being part of the social revolution that the mass use of this fuel has brought about. EVOLUTION IN NUMBER OF NATURAL GAS USERS Year Users (thousands) , , , ,600

21 Extreme poverty percentage 8.5 % GDP (billones) USD 283 Per capita GDP USD 5801 GDP growth 2.0 % Exchange rate annual average per dollar FTD (eop) 6.9 % Average FTD 6.7 % USD 42.8 Total imports billon Fuentes: DANE, Banrep, FocusEconomics. Natural gas continues to be a significantly important fuel in Colombia s energy basket, especially in terms of industrial and domestic sector consumption, which remains stable. It is also used by thermoelectric power stations to meet peak demand. Proven reserves (Tpc) 4,4* Production capacity (Gbtud) 1,017 Colombia consumption (Gbtud) 1,020 Transportation Kilometers of gas pipeline 7335* Distribution Users 8,627,947 Towns and villages served 706 Vehicles converted to vehicular natural gas 556,183 Demand (Gbtud) Domestic 176 Industry 268 Vehicular natural gas 73 Petrochemicals 17 Refining 160 Thermoelectric 270 Otros 56 *Figures 2015

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