Eni, Repsol Reach Deal to Start Exporting Venezuelan Gas in 2031
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Delcy Rodríguez Photographer: Jesus Vargas/Getty Images Photo by Jesus Vargas /Photographer: Jesus Vargas/GettyArticle content(Bloomberg) — Eni SpA and Repsol SA plan to start exporting natural gas from Venezuela by the end of 2031 after reaching a deal with Caracas to revive a long-stalled effort to expand production from a massive offshore field.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe agreement with interim President Delcy Rodríguez will enable the companies to more than double production at the field in the Gulf of Venezuela and export the fuel as liquefied natural gas from a floating terminal, according to people familiar with the matter. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentEni and Repsol also received assurances they’ll be compensated for billions of dollars worth of gas they’ve pumped for Venezuela at the field over the years but weren’t paid for, the people said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentIt is a significant victory for the European companies, which have long pushed to export gas from the prolific field, sticking with the 20-year-old project through years of political turmoil. The deal comes as the Iran war has cut off about 20% of the world’s supply of liquefied natural gas and as the Trump administration is easing sanctions in Venezuela to allow companies to rebuild its crumbling energy infrastructure. Article contentEni, based in Italy, confirmed in a statement that the companies reached an agreement with Venezuela to increase gas production and start exporting, drawing on its past experience with floating LNG terminals. Repsol, based in Spain, declined to comment. PDVSA didn’t respond.Article contentThe deal was signed in mid-March, but the details were not made public, the people said. Eni and Repsol plan to submit a final development plan to Petróleos de Venezuela SA by June, according to the people who declined to speak publicly because the matter is private.Article contentArticle contentVenezuela has focused for more than a century on its oil reserves, which are among the largest in the world, when it comes to energy production. But the nation also has bountiful offshore gas deposits. Article contentEni and Repsol discovered the massive Perla field in 2009, in shallow waters near Venezuela’s border with Colombia. It holds an estimated 17 trillion cubic feet of gas, making it one of the largest gas discoveries in Latin America.Article contentThe companies jointly developed it with the intention of exporting gas. Their deal with Venezuela, however, called for Eni and Repsol to supply the nation’s domestic market from the field before sending any fuel abroad. Over the years the companies struggled to reach an agreement with Venezuela over exactly how much the domestic market needed.Article contentThe field currently produces about 585 million cubic feet of gas per day, supplying power plants, petrochemical facilities, factories and homes in Western Venezuela. Eni and Repsol’s new agreement with the government allows the companies to start exporting once they’re supplying 645 million cubic feet per day for domestic use, the people said. Trending Subscriber only. 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They can be faster to build but present complex engineering challenges that can make them difficult to finance and develop. Article contentEni has experience with the technology in Congo and Mozambique. The company is also developing a project with Argentina’s YPF SA using two floating vessels.Article content—With assistance from Ruth Liao and Rodrigo Orihuela.Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Subscriber only. 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