Colombian Ecopetrol cannot import gas from Venezuela due to the lack of a US permit and the unsatisfactory condition of the gas pipeline. The country is looking for alternatives to overcome the fuel shortage.
Colombia's state oil company Ecopetrol SA currently lacks the legal capacity to begin supplying natural gas from Venezuela. Minister of Mines and Energy Edwin Palma stated that a special permit from the U.S. Office of Foreign Assets Control is required for such a transaction, which the company does not possess. This is reported by Bloomberg, writes UNN.
Details
President Gustavo Petro's government is forced to seek alternative ways to overcome the fuel deficit, as Colombia's domestic gas reserves continue to rapidly decline. Currently, the country is forced to buy expensive liquefied natural gas on international markets to ensure the operation of industrial enterprises and meet the household needs of the population.
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In addition to the lack of sanctions permits, a significant obstacle is the unsatisfactory condition of the gas pipeline connecting the two countries, as it requires major repairs before any operation can begin.
Unfortunately, it seems we will not be able to make this transaction through Ecopetrol. A license from the United States government is needed. And applying for a new license would be more complex and time-consuming, and time is critical for us.
— Palma stated during a press briefing.
Prospects for resolving the fuel deficit
Despite high-level visits to Caracas, the prospects for a rapid resumption of imports remain dim due to bureaucratic restrictions from the United States.
Colombian authorities acknowledge that obtaining new permits is too lengthy a process that does not meet the urgent needs of the energy system. In this regard, the country's energy sector is preparing for further increases in energy costs until a stable solution for supplies is found or its own production base is restored.
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