Colombia Ecopetrol, Chevron Reduce Gas Exports To Venezuela
BOGOTA -(Dow Jones)- Colombia's state-controlled oil company Ecopetrol SA (
ECOPETROL.BO) and its partner U.S.-based Chevron Corp. (CVX) reduced shipments
of natural gas to Venezuela as demand in Colombia increased, an Ecopetrol
spokeswoman said Friday.
In Late October, Ecopetrol and Chevron reduced exports to about 70 million
cubic feet a day, down from about 220 million cubic feet a day previously, said
the spokeswoman, who requested anonymity.
The demand for natural gas increased in Colombia as several gas-fired power-
generation plants boosted electricity production as a drought reduced the amount
of water available in hydro-power plants' reservoirs.
Colombian hydropower plants account for about two thirds of the installed
capacity in the country.
Ecopetrol's spokeswoman said the reduction of gas exports is independent of
the diplomatic clash between the governments of both countries.
Ecopetrol and Chevron export natural gas from the Ballena gas field on in
northern Colombia to Maracaibo in Venezuela through a 224-kilometer pipeline.
The Venezuelan state-owned oil company Petroleos de Venezuela SA, or PdVSA,
spent $467 million to build the pipeline to ship Colombian gas to Maracaibo.
Venezuela needs to import natural gas, despite its own huge reserves, because it
lacks the infrastructure and sufficient investment in its natural gas output.
PdVSA injects the gas in its oil reservoirs to increase pressure and boost
production. Venezuela also uses natural gas in its petrochemicals industry.
On Oct. 1, PdVSA's Vice President Asdrubal Chavez said the company was
prepared to face a possible reduced supply of natural gas.
-By Inti Landauro, Dow Jones Newswires; 57-1-610 70 44 Ext. 1131; colombia@
dowjones.com
(Dan Molinski in Caracas contributed to this article)
(END) Dow Jones Newswires
11-06-091612ET
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