Venezuela Signs $100 Million Gas Pipeline Deal with Colombia

[bemildred]

Caracas, July 15, 2004-With a firm step towards further
energy sector integration with neighboring South American
countries, Venezuelan President Hugo Chavez signed a $100
million deal with Colombia?s president Alvaro Uribe
yesterday to build a 177 km long natural gas pipeline from
Colombia?s northeastern Guarija state to Venezuela?s
westerly Lake Maracaibo area, Venezuela´s main oil
producing region.

The Guarija-Maracaibo gas pipeline deal was signed in a
petrochemical plant that has been out of operation due to a
lack of gas to power the plant. Although Venezuela has the
eighth largest gas reserves in the world, it has yet to be
developed sufficiently to transport the gas from the
country?s eastern most region, where the reserve is located,
to Lake Maracaibo, the western most of Venezuela?s
regions.

According to the Venezuelan Minister of Energy and Mines,
Rafael Ramirez, the gas will be sent from Colombia to
Venezuela for the next seven years but after that time, the
flow will be reversed. ?Venezuelan gas will be sent to
Colombia, Panama, through a previous plan of integration
that will extend to Mexico,? Ramirez said.

more

[Darranar]

1. Hasn't there been something of a conflict...

between Venezuela and Colombia lately?

Perhaps the US is losing its grip on Colombia's regime?

[bemildred]

2. Hard to say.

I interpret this one and the one about the tanks as indicating
a "lessening" of the likelihood of conflict between the two
states. Things sound pretty friendly now compared to a couple
months ago when we had the paramilitaries and a good deal of
propaganda about the referendum and the usual lies about Chavez.
Now it seems quiet and friendly and we are in the run-up to the
election, so I'm thinkinbg that might represent a significant shift.

[On the Road]

3. Economics Trumps Politics

as it should in this case. This is simple practicality.