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Mexico Offered Supply Of Natural Gas By Venezuela's Maduro, Expert Dismiss The Plan


02/21/2021


Mexico Offered Supply Of Natural Gas By Venezuela's Maduro, Expert Dismiss The Plan
After Mexico experienced some disruptions to the supply of natural gas and other fuels from Texas because of a natural disaster in the US state, the Venezuelan President Nicolas Maduro proposed that it was an opportunity for his country to offer Mexico a proposal for supplying natural gas.
 
Energy experts however have dismissed the plan as being completely unrealistic.
 
An unprecedented clod wave in Texas forced the authorities to stop exports of natural gas to outside of the state earlier in the week which prompted Mexico to import liquefied natural gas (LNG) under emergency conditions.
 
“We must speak with Mexico’s government because I have seen the problem with gas supply and the effort that President [Andres Manuel] Lopez Obrador is making to resolve it,” Maduro said in a speech at state oil company Petroleos de Venezuela’s headquarters.
 
“We should propose that we become secure suppliers of gas to Mexico.”
 
No further details of the plan were provided by Maduro. There is no liquefaction plant within Venezuela that can convert natural gas into its liquefied state to turn it into LNG. It would be necessary for the country to make this conversion in order to send its natural gas through the sea route, said experts. However such a liquefaction project would be nearly impossible for Venezuela to come up with because the country is current heavily cash strapped and is under heavy sanctions form the United States, said experts.
 
In theory, Venezuela could be in a position to export gas to neighbouring Trinidad and Tobago, which has several LNG plants, because of the large gas reserves that the South American country owns. However that also seems improbable as there is no system of pipeline between the two countries to transport the natural gas produced in Venezuela.
 
Pointing out to continued sanctions imposed by the US on the state oil company of Venezuela, a decree that extended an “energy emergency” declaration for country’s the oil industry for another year was signed by him,. Maduro said during the speech.
 
Speaking at the same event, the country’s oil minister Tareck El Aissami said that thus year, the crude oil production capacity of the state owned petroleum company PDVSA will reach a total of 1.5 million barrels per day (bpd). In its communication to the oil cartel OPEC, the South American country had informed earlier that it had produced 484,000 bpd in the month January which was less than half of the average production of 1 million bpd that it had done in 2019.
 
(Source:www.reuters.com)


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