PDVSA Plans Exit From Colombia–Venezuela Gas Pipeline Contract

Venezuela’s PDVSA plans to terminate its contract with Ecopetrol tied to the Antonio Ricaurte gas pipeline linking the two countries, raising new uncertainty around efforts to revive cross-border gas trade.

(Reuters) — Colombia's Energy Minister Edwin Palma said Venezuela's state oil company PDVSA intends to end a contract with Colombia's Ecopetrol over the Antonio Ricaurte pipeline, saying there was insufficient investment to repair it.

In a post on X on March 14, Palma said the government plans to meet with the U.S. government on March 16 to discuss lifting sanctions against Venezuela with the aim of normalizing commercial relations.

The announcement comes a day after a high-level meeting between the two countries in Caracas, where officials discussed security, U.S. sanctions and energy cooperation, including repairs to the pipeline.

The Antonio Ricaurte pipeline, which stretches 225 kilometers (140 miles) between the two countries and has transport capacity of 500 million cubic feet of gas, has been inactive for years.

Colombia's energy ministry said earlier this week that the two countries had agreed on a roadmap to repair a damaged section of the pipeline, with PDVSA set to carry out the work in line with environmental rules and along the original route.

Speaking at an event with members of the local fishing industry in Venezuela later in the day, Venezuelan President Delcy Rodriguez highlighted the meeting and developments in bilateral energy cooperation with Colombia.

"In a few months, via pipeline, Venezuela and Colombia will be interconnected in terms of gas," Rodriguez said, adding the importance of lifting sanctions and developing stronger relations with Colombia. "We have to integrate, we have to unite for national advancement and share development."

Rodriguez also said that Venezuela received $300 million in funds from oil sales on Friday and that proceeds would go to fund social programs.

Palma noted there is "political will" from both Ecopetrol and PDVSA to review the agreement next year, but to do so sanctions must be lifted and normal commercial relations need to resume.

Palma also said Colombia has approved licenses to resume imports of 1.26 million gallons of liquefied petroleum gas per month from Venezuela.

Palma said talks also included a proposal from ISA Intercolombia to lead investments in electrical infrastructure and connection between Colombia and Venezuela via La Guajira, a region which hosts significant green energy potential.

Controlled by Colombia's state-run Ecopetrol, ISA is a conglomerate which oversees energy, telecommunications and roadways across Latin America.