The development of a new pipeline is expected to enable the government to proceed with additional exploration tenders, easing producers' worries and assuring them that transport capacity will be available if new discoveries are found. SOTE runs through the Andes, reaching elevations of 13,200 feet. Pressure reducing stations are employed on the Pacific side of the mountains as the oil is carried through lower elevations to the Balao terminal. SOTE is currently operating above capacity. This has put a strain on the line not only because of the higher volumes, but because Oriente crudes are becoming heavier and more viscous as new fields in the area are brought online.
Activity is also underway to upgrade existing pipelines.
The army is seeking a private partner to finance the project and to provide technology. Upon completion, a fee will be charged, set by Petroecuador, for those firms wishing to transport crude through the pipeline. Ecuador has an estimated 3.7 trillion cubic feet of natural gas reserves, but the country lacks the infrastructure necessary to utilize these resources. For that reason, there is currently no gas market of any significance in Ecuador. This could change, however, with development of gas fields in the Gulf of Guayaquil and the Oriente.