Venezuela Flared 46% of its 3,895 MMcf/d of Natural Gas Production in 2024 -

HOUSTON, TEXAS (Pietro D. Pitts, Energy Analytics Institute, 21.Feb.2025) — Oil producing Venezuela, a founding member of the Organization of the Petroleum Exporting Countries (OPEC), flared 46% of its natural gas production of 3,895 million cubic feet per day (MMcf/d) in 2024, according to details provided by ChemStrategy. Another 46% of the production was used in Venezuela (mainly for power generation) while 8% was vented.

As such, flaring remains a mainstay in Venezuela as the reinjection of associated gas continues to decline owing to insufficient infrastructure and a lack of equipment, ChemStrategy director Rubén Pérez Méndez said 18 Feb. 2025 from Maracaibo, Venezuela during a presentation about Venezuela’s gas sector.

The situation around Venezuela’s gas production remains complicated as 76.5% of the gas production in 2024 was associated with the production of oil, Pérez said. That’s to say, just 23.5% of the Caribbean country’s gas production is non-associated or not associated with the production of oil.

Amid this dynamic, lower gas reinjected to aid in the production of oil has also exerted additional stress on Venezuela’s ability to boost production above a 1 million barrel per day (MMb/d) barrier and maintain it there for an extended time.

Venezuela’s gas production averaged 3,895 MMcf/d in 2024, the lowest point in ChemStrategy’s 2010-2024 study period. This compares to gas production that averaged 6,873 MMcf/d in 2010.

After 5 years of rising production, gas volumes peaked at an average 7,945 MMcf/d in 2016 before starting a slow decline which turned drastic in 2020 with the implementation of US sanctions on Venezuela’s oil sector in the prior year.

Said sanctions, imposed on the OPEC country by the US in 2019 by then president Donald Trump, aimed to topple the government of Venezuela’s president Nicolás Maduro Moros with an eye on achieving “free and fair” elections.

Under the weight of US sanctions, Venezuela’s gas production averaged 4,525 MMcf/d in 2020 compared to 5,772 MMcf/d in 2019. Importantly, Venezuela’s gas production has been in a downward trend since 2016. This, despite data from officials at state-owned Petróleos de Venezuela (PDVSA) and OPEC that demonstrate that oil production has been rising in recent years.

Caracas-based PDVSA is Venezuela’s principal gas producer, producing 64.17% of the country’s gas in 2024. In a distant second place was production from the Cardón IV offshore gas project. There, production averaged 566 MMcf/d in 2024, or 14.54% of Venezuela’s gas in 2024, according to Pérez. Production at Cardón IV was around 588 MMcf/d in Jan. 2025, he said.

It should be noted that Venezuela’s primary non-associated gas production comes from Cardón IV. The project partners Italy’s Eni SpA and Spain’s Repsol SA.

Gas from Cardón IV is a high methane gas that is mainly destined for the domestic and petrochemical sectors in Zulia state in western Venezuela, Pérez said.

Gas production from Ipergas/Gas Guarico averaged close to 120 MMcf/d in 2024, according to Pérez.

Complicated situation

While the situation facing Venezuela’s gas sector remains complicated, owing to oil sector sanctions and a lack of investment from international oil companies (IOCs) and PDVSA, Pérez said there were still opportunities for private companies attracted by the OPEC country’s massive gas reserves onshore and offshore.

Perez said Venezuela’s gas reserves ended 2024 at 191.68 trillion cubic feet (Tcf). Reserves have been in decline since peaking at around 203 Tcf in 2016, according ChemStrategy data.

In terms of export opportunities, which offer higher pricing realizations than in the regulated domestic market, investors have potential to ship piped-gas to 2 primary and immediate markets: Trinidad and Tobago and Colombia.

In regards to Trinidad, work will continue with an eye on the twin-island country importing much-needed gas from Venezuela’s Dragón field, which is part of Mariscal Sucre offshore project.

A lot of work was carried out in 2024 by companies involved in the Dragón project and in preparation of installing the necessary infrastructure to connect Dragón with the Shell-operated Hibiscus platform for later shipment to the Trinidad mainland. Some of the work involved the following supply, well stimulation, survey and seismic vessels: Dona Jose II, Go Electra, PXGEO 2 and Akademik N.

Russia continues to have an interest in developing the Patao-Mejillones gas fields, which form part of the Mariscal Sucre. Mariscal Sucre comprises 4 fields: Dragón, Patao, Mejillones and Río Caribe.

The 4 fields associated with Mariscal Sucre, located in water depths between 328-427 feet (100-130m), are situated nearly 25 miles north of Venezuela’s Paria peninsula in Sucre state, according to Technip.

In the early 2010s, PDVSA executives said peak production from the 4 fields that comprise Mariscal Sucre could reach 1,200 MMcf/d of gas and 28,000 b/d of condensates.

At that time, PDVSA’s initial aim was to destine Mariscal Sucre gas production for both the export markets as well as the Venezuela’s domestic market via the CIGMA industrial gas complex plant located in Güiria in Sucre state. That, according to details revealed by PDVSA’s former president Rafael Ramírez during an exclusive interview in 2013 in Caracas, Venezuela with Energy Analytics Institute (EAI).

In terms of Colombia, Pérez said there was an “important infrastructure” problem which complicates the export of Venezuelan gas to Colombia, referring to the Antonio Ricaurte gas pipeline.

But, Pérez said there was great opportunity for private investors owing to Colombia’s need to import gas for domestic demand. A number of Colombian business persons are interested in the gas trade between Colombia and Venezuela. Additionally, Pérez said Venezuelan gas was “very competitive” a the level of Ballena Station: $2.20/MMbtu-$5.60/MMbtu.

Finally, more offshore exploration is on tap as well as seismic activities. Some blocks could also be assigned to companies interested in the offshore gas space. These include companies from China and Nigeria, just to name 2 countries.

In terms of Washington’s next moves in the Latin America and Caribbean (LAC) region and especially as they relate to Trinidad seeking to import gas from sanctioned Venezuela, Pérez told EAI there was uncertainty around what was to come.

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