Ecopetrol Negotiates 10-Year Gas Deal With Venezuela
Ecopetrol is negotiating a 10-year contract to import Venezuelan gas and has applied for a U.S. sanctions license to operate a key pipeline.
Ecopetrol, Colombia's state-controlled oil company, is negotiating a 10-year contract to purchase Venezuelan gas at prices described by company president Joaquín Gutiérrez as "very competitive and well below today’s market price." The first phase of imports is expected to reach 50 million cubic feet per day, accounting for approximately 5% of Colombia's national gas consumption.
To facilitate the deal, Ecopetrol has applied to the U.S. Treasury's Office of Foreign Assets Control for a specific license to negotiate the operation of the 88 km Colombian section of the Antonio Ricaurte gas pipeline. The company intends to manage this section through its subsidiary, Cenit, and will formally request that Venezuela's state oil company, Pdvsa, operate the pipeline.
This strategic shift follows Ecopetrol's decision to abandon liquefied natural gas purchases after prices increased by 196% over the past year. Alongside the Venezuelan negotiations, the company announced plans to restart shale exploration in Colombia's Magdalena Medio river valley, specifically targeting the La Luna formation.
