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Venezuela-Colombia Gas Deal in Limbo

Venezuela-Colombia Gas Deal in LimboVenezuela-Colombia Gas Deal in Limbo

Venezuela's state oil company, PDVSA, has delayed the export of natural gas to Colombia because of climate factors, the Colombian Mines and Energy Ministry said on Friday.

In a letter to the Colombian government, PDVSA said the exports would not begin because of "climate variability", the ministry said in a statement, Reuters reported.

The exports are part of a deal between the two countries, which includes provisions for the neighbors to supply their own markets if necessary before exporting.

"The contract specifies the delivery of 39 million cubic feet a day from Venezuela, which corresponds to just over 3% of daily supply in Colombia," the statement said.

Colombian state oil company Ecopetrol has asked PDVSA to give a new date by which the exports could begin.

Financialtribune.com