Released November 27, 2023 | SUGAR LAND
en
Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Colombia's majority state-owned oil company Ecopetrol (NYSE:EC) (Bogota, Colombia) could import natural gas from Venezuela to fulfill Colombia's energy demands and reduce costs. Last week, Ecopetrol said it is analyzing the opportunity, following a meeting between Colombian President Gustavo Petro and his Venezuelan counterpart, Nicolas Maduro, where they discussed stronger energy cooperation.
This effort to import gas from Venezuela plays into Petro's efforts to strengthen relations with its neighbor and push an environmental agenda with natural gas at the center. Since coming to power, he has criticized coal and oil production, and his administration has stopped new exploration licenses.
For Colombia, Venezuelan imports offer an opportunity to get cheaper natural gas and decrease transportation costs, given the pipeline connections between the nations. The gas would be transported by the 225-kilometer (139-mile) Transcaribeño Antonio Ricaurte gas pipeline, which connects the Maracaibo Lake with Punta Ballenas, in Colombia's Guajira.
The Maracaibo Lake is home to some of Venezuela's largest oil fields, where associated gas is produced.
Ecopetrol is exploring for natural gas its offshore waters. In the third quarter, Ecopetrol discovered the Glaucus-1 well in the Col-5 offshore block, which verified the presence of natural gas in the Colombian Caribbean.
However, it will take some time before these offshore projects begin production, making the option to import from Venezuela all the more appealing.
This presents Venezuela with a great opportunity to profit from its natural gas, much of which is burned or released into the atmosphere. Over the years, Venezuela has struggled to benefit from exporting associated natural gas, despite having one of the world's largest gas reserves.
Earlier this year, Pedro Tellechea, Venezuela's oil minister and president of Petróleos de Venezuela S.A. (PDVSA), said that Eni SpA (NYSE:E) (Rome, Italy) and Repsol (Madrid, Spain) would receive a license to export liquified natural gas (LNG) from Venezuela. Eni and Repsol operate the Cardon IV offshore gas field, which produces 580 million cubic feet per day.
Venezuela also is in talks with Trinidad and Tobago and Shell plc (NYSE:SHEL) (London, England) to develop the offshore Dragon gas field to further expand its natural gas export capabilities.
Ecopetrol said in a statement: "Knowing the background and the need to import gas for the coming years, the Board of Directors asked the administration to quickly evaluate the different alternatives to ensure the availability of gas in the required quantities and times within the legal framework and existing limitations, in order to guarantee energy security in a timely and cost-efficient manner for the benefit of the sector and the country."
Importing gas from Venezuela likely will require maintenance of midstream infrastructure, given that the pipeline has not been used since 2015.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
This effort to import gas from Venezuela plays into Petro's efforts to strengthen relations with its neighbor and push an environmental agenda with natural gas at the center. Since coming to power, he has criticized coal and oil production, and his administration has stopped new exploration licenses.
For Colombia, Venezuelan imports offer an opportunity to get cheaper natural gas and decrease transportation costs, given the pipeline connections between the nations. The gas would be transported by the 225-kilometer (139-mile) Transcaribeño Antonio Ricaurte gas pipeline, which connects the Maracaibo Lake with Punta Ballenas, in Colombia's Guajira.
The Maracaibo Lake is home to some of Venezuela's largest oil fields, where associated gas is produced.
Ecopetrol is exploring for natural gas its offshore waters. In the third quarter, Ecopetrol discovered the Glaucus-1 well in the Col-5 offshore block, which verified the presence of natural gas in the Colombian Caribbean.
However, it will take some time before these offshore projects begin production, making the option to import from Venezuela all the more appealing.
This presents Venezuela with a great opportunity to profit from its natural gas, much of which is burned or released into the atmosphere. Over the years, Venezuela has struggled to benefit from exporting associated natural gas, despite having one of the world's largest gas reserves.
Earlier this year, Pedro Tellechea, Venezuela's oil minister and president of Petróleos de Venezuela S.A. (PDVSA), said that Eni SpA (NYSE:E) (Rome, Italy) and Repsol (Madrid, Spain) would receive a license to export liquified natural gas (LNG) from Venezuela. Eni and Repsol operate the Cardon IV offshore gas field, which produces 580 million cubic feet per day.
Venezuela also is in talks with Trinidad and Tobago and Shell plc (NYSE:SHEL) (London, England) to develop the offshore Dragon gas field to further expand its natural gas export capabilities.
Ecopetrol said in a statement: "Knowing the background and the need to import gas for the coming years, the Board of Directors asked the administration to quickly evaluate the different alternatives to ensure the availability of gas in the required quantities and times within the legal framework and existing limitations, in order to guarantee energy security in a timely and cost-efficient manner for the benefit of the sector and the country."
Importing gas from Venezuela likely will require maintenance of midstream infrastructure, given that the pipeline has not been used since 2015.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
