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Venezuela, Colombia an Panama launch construction of a gas pipeline
By Elio Ohep
Petroleumworld
El Tigre, la Guajira, Venezuela
Petroleumworld.com 07 10 06On Saturday, Venezuela started the construction of a $300 million pipeline to transport gas and oil to Colombia and later to Panama. Venezuelan president Hugo Chavez, Colombia's President Alvaro Uribe and Panama's President Martin Torrijos, were present last Saturday afternoon at the first welding of the first segment of the pipeline from Maracaibo, Venezuela to Puerto Ballenas in Colombia.
The 225 km, 26 inches pipeline is expected to send for the first 4 years, 150 million cubic feet of natural gas (about 4.2 million cubic meters) per day, to Maracaibo to help with the short term lack of gas in western Venezuela, later Venezuela will used the pipeline to send gas 250 million cubic feet of natural gas to Colombia, and later to Panama with possibility to extend the pipeline to Costa Rica and used it to export hydrocarbons to Asia.
Chavez said it would allow Venezuela to substitute natural gas for more expensive diesel fuel, saving 30 million dollars a month. Construction is expected to take 10 months.
Chavez described the pipeline as a very strategically important integration route linking the Caribbean to the Pacific Ocean.
'This natural gas pipeline is very important for Venezuela, very important for Colombia, and very important for the integration of the two nations' Chavez said
"The axis that will be formed with this pipe ... should be like a central nerve for the integration of Colombia and Venezuela," Chavez added.
"I've heard President Chavez describe his dream of gas, oil and energy integration many times ... and it must become a reality," Uribe said.
"This gas pipeline is going to help the two countries. We also confide in the idea of integration with Panama. This way, we help each other advance on the integration of the countries," he added.
Venezuela produces around 6.3 billion cubic feet per day of natural gas, most of which is used by the nation's oil industry operations, but it has Latin America's largest proven gas reserves estimated at 149 trillion cubic feet (about 4.2 trillion cubic meters) and is now in the first development stage of its natural gas resource
The 336 million U.S. dollars project is financed by the Venezuela's oil company PDVSA.
The construction of project is lead by PDVSA with the help of Colombia's oil company Ecopetrol.Also, the three presidents signed a MOU on setting up a negotiating committee for promoting energy cooperation among the three nations.
The first stage of the project from Maracaibo to Puerto Ballena in Colombia is expected to be completed by next March.
Venezuela is the world's No. 5 oil exporter, and one of the to supplier to the U.S., it wants to reduce dependence on U.S. energy markets for political and ideological reasons.
- Elio Ohep. editor@petroleumworld, 58 412 996 3730, Caracas.Petroleumworld News 07 09 06
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