Tuesday, January 5, 2016

Venezuela explains reason for gas export delay

Colombia has suddenly found itself in something of an energy crisis. Colombia overwhelmingly relies on hydroelectric energy production, and a steep drop in rainfall caused by El Niño, has transformed Colombia from a natural gas exporter to a natural gas importer. In response, Colombia quickly negotiated a new oil export agreement with neighboring Venezuela, to ensure its supply of natural gas. However, last week, Venezuela announced a temporary suspension of natural gas exports to Colombia.

At first, Colombia was left scrambling for an explanation, but Venezuelan state-owned oil company PDVSA explained that it had to cut off natural gas exports because its own hydroelectric energy production has also been deeply affected by El Niño. PDVSA explained that, “we are prepared to start sending 39 million cubic feet of gas per day to Colombia, once the hydroelectric reservoirs in the country are filled sufficiently to guarantee electrical service in the country.” PDVSA also noted that Colombia was forced to do something similar back in April of 2014, when natural gas had been moving in the opposite direction.


Naturgas president Eduardo Pizano stressed that PDVSA’s decision is perfectly legal, and will not gravely affect Colombia, given that the exports were to represent just 3% of what Colombia produces domestically. However, given the suspension, Colombia will now need to look for alternatives to importing natural gas from Venezuela.

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