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Saturday
Lagniappe
Interview
with gas expert Diego González Cruz
“ In Venezuela, we continue thinning
out the leaves”
Paulo
Pérez Zambrano/El Universal
In the opinion of Diego González, no progress has
been made in the gas business as expected
By Marianna Parraga
It turned out that the Gas Pipeline of the South was the chronicle
of a death foretold. Now Venezuela is offering re-gasifying
terminal stations
Since
the Gas Pipeline of the South, one of the mainstays of the
regional
integration strategy set by the government
of Hugo Chávez, came to a standstill, the criticism
made once by some Latin American experts to the "Pharaonic
project" has emerged again.
For Diego
González Cruz, a gas expert and ex official
with state-run oil holding Petróleos de Venezuela and
the former Ministry of Energy and Mines, President Chávez'
insistence on a trans-regional pipeline was just a waste of
time that could be used to set more feasible export strategies,
particularly with regard to liquefied natural gas (LNG).
Q: Why did the project on the Gas Pipeline of the South fail?
A: What happened to the gas pipeline is the chronicle of a
death foretold. Now Venezuela is offering re-gasifying terminal
stations to deliver LNG.
Q: Why was the choice of LNG not suggested from the very beginning?
Was the advice of hemispheric organizations that support gas
pipelines as integration projects followed?
A: The point at issue is that it was not just a gas pipeline,
but one intended to be 4,000 kilometers in length and not a
single cubic foot of gas unloaded. There is a project that
was advanced by Dr. Enrique Colmenares Finol. It was called
Liberators' Gas Pipeline. It did have integrationist traits
because it was intended to pass through Venezuela, Colombia,
Ecuador, Peru and Bolivia, to reach the South, but leaving
and taking gas on its way.
Q: However, in case of leaving and taking gas on its way,
that issue could have been solved. As a matter of fact, some
producing countries were interested in taking part.
A: Absolutely. But do not forget that the Venezuelan government
suggested first to undertake the project on its own. Bolivia
complained about prices and then the laying was split into
stages. The first one would go up to Fortaleza, northern Brazil.
I think that not even that was feasible, because (Brazilian
state company) Petrobras has announced that it completed a
pipeline to Manaos that will be extended eastwards. Therefore,
that northern region will be standalone, and this may kill
any pipeline going from there.
Q. Does it explain the multiple path changes?
A: Of course.
But, anyhow, anybody who knows a little geography could have
realized that a gas pipeline from Güiria to
Santa Elena de Uairén will pass only through four settlements
with no industrial development and able to be supplied with
less than one million cubic feet, namely: Upata, Guasipati,
El Callao and Tumeremo. Therefore, it was a useless gas pipeline
up to the border. From there on, more than 100 kilometers were
needed to reach Boa Vista, which will be served by Petrobras
internal pipeline. Therefore, it would continue without any
distribution until the Atlantic. But also there, Petrobras
has reported on offshore gas findings in Bahía, without
taking into account that Brazil is building re-gasifying facilities
and has already the technology to keep the gas liquefied and
re-gasify it on the destination site.
Q:
As a matter of fact, Chávez claimed that it was
Brazil that resolved to stop the project.
A: Chávez
does not know that Brazilian states are federal and independent
indeed. This is why there are in Brazil more
than 60 gas vendors.
Q: Will Venezuela insist on the gas pipeline?
A: I do
not think so. At long last, they realized that it is better
to take it liquefied. Time was wasted and continues
to be wasted. While Trinidad and Tobago go for the fifth liquefaction
row, we are still thinning out the leaves. The Cristóbal
Colón project was prior to the Trinidadian projects.
Its weakness is lack of reserves.
Q: Does the idea of liquefying gas in Trinidad come from there?
What about inward development?
A:
Yes, but Trinidad has kept distance from Venezuela because
of Petrocaribe. I do not know how many years will take a single
molecule of gas to reach any of the Caribbean islands. Remember
that they, despite having different economic systems and weak
states, are bound to organize state firms.
Separate roads
González backs the idea that has occurred to more than
one planners of the Venezuelan energy business to make Pdvsa
Gas independent by turning it into a joint stock company.
Q: It would be something similar to what happened to Pequiven?
A:
Exactly, but rather than joining it to a ministry, the plans
handled by Pdvsa until 1999 and that did not bear fruit
are being followed. Even the vice-president offices of Gas
and Petro-chemistry were created. It was quite a major success.
And the Gas Hydrocarbons Organic Law, which is a law related
to opening, was approved.
Q: What do you think about the implementation of the Gas Hydrocarbons
Organic Law?
A: It was not as successful as expected. From the enactment
of the law to 2002, not a single kilometer of gas pipeline
was laid. It was procrastinated. It is the same old story of
the state-like way of thinking.
Q: Where is the gas industry going in the advent of the draft
amendment to the law?
A: Inshore operators are thinking already to become joint
ventures. What is the meaning of forcing this? They are crumbles.
We are going nowhere. Pdvsa problem is not that 20,000 people
were laid off, but having fired 150 directors and managers,
who were the business planners. Pdvsa tragedy is distrust in
planning.
Marianna
Parraga is
an Energy reported with Venezuela's national newspaper El Universal. Diego
Gonzalez
Cruz in
a Venezuelan petroleum engenieer,
especialist in natural gas, ex
official with state-run oil holding Petróleos de Venezuela PDVSA and the
former
Ministry of Energy and Mines,at present is a consultant.
(gonzalezdw@cantv.net). Petroleumworld
do not necessarily share these views.
Editor's
Note: This commentary was originally published by El Universal,
on the September 07, 2007. The translation was done by Conchita Delgado.
Petroleumworld reprint this article in the interest of our
readers.
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