U.S. Sanctions Halt Colombia’s Plans to Import Gas from Venezuela

Colombia’s Ecopetrol cannot buy natural gas from Venezuela due to U.S. sanctions, Chairwoman Monica de Greiff confirmed. The restrictions come as Colombia faces a looming gas deficit that could reach 20% by 2026.

(Reuters) — Colombian state-run energy company Ecopetrol cannot acquire Venezuelan-owned fertilizer producer Monomeros Colombo Venezolanos or buy natural gas from its neighbor due to U.S. sanctions, the company's chairwoman, Monica de Greiff, told Caracol radio station on Sept. 4.

In July, Colombia's Mines and Energy Minister Edwin Palma said the government had signed a confidentiality agreement with Venezuela to exchange information related to a potential acquisition of Barranquilla-headquartered Monomeros.

"Because of all these sanctions imposed by the United States, Ecopetrol cannot buy Monomeros," De Greiff said.

Venezuela is on the sanctions list of the U.S. Treasury Department's Office of Foreign Assets Control, which restricts transactions with Venezuelan state-owned entities. Monomeros is owned by state petrochemical company Pequiven.

De Greiff added that Ecopetrol is also unable to buy gas directly from Venezuela for the same reason.

Earlier this week, minister Palma said he was confident that gas imports from Venezuela could begin by the end of the year.

Colombia is facing a potential gas deficit that industry groups say could reach 20% by 2026, partly due to a sharp decline in exploration amid government efforts to reduce reliance on fossil fuels.