Venezuela´s PDVSA to Start Building $100 Million Gas Pipeline Next Year

Venezuela´s state oil firm PDVSA will start building a $100 million natural gas pipeline in June 2006 to provide a long-term solution to Nueva Esparta state´s electricity woes, Jose del Carmen Millan, president of the state´s electricity and gas service regulator Megane, said this week.

The gas would come from onshore and offshore oil and gas fields in eastern Venezuela including the onshore Yucal Placer field operated by the Ypergas joint venture in northern Guarico state, Millan said.

French company Total and its partners acquired a 35-year concession for the Yucal gas fields in June 2001. Total owns 69.5 percent of the concession. Other partners are Spain´s Repsol-YPF (15 percent), Venezuela´s Inepetrol (10.2 percent) and Otepi (5.3 percent).

Nueva Esparta state private utility Seneca normally imports 60MW from the mainland via an underwater cable, but the line is in need of maintenance and operating at less than capacity.

Nueva Esparta is home to the tourist haven of Margarita Island, one of the Caribbean´s top destinations, but tourists and residents on the island have had to endure electricity rationing since early August expected to last at least until the end of September.