CARACAS: Venezuelan state oil company PDVSA said it would not renew its 1.4 million cubic metre per day contract to import gas from Colombia’s Ecopetrol and Chevron when it expires on 30 June, according to the Colombia Reports.
Venezuela instead plans to use domestic production to meet gas demand.
“Supply in the past months has been completely irregular, with frequent problems that have even at times turned off supplies altogether,” PDVSA said.
Colombia previously said it had to reduce gas exports to Venezuela to meet its own power demand.
The 225 km pipeline connecting the two countries was opened in 2007.
The plan was for Venezuela to import gas from Colombia for four to seven years, after which the flow would reverse.
PDVSA said production is planned to start in July from the Cardon 4 block in the offshore La Perla field, which will meet domestic demand.
The $5 billion project includes Repsol and Eni as partners with a 32.5% share each and PDVSA holding the remainder.
