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News: Economy

Venezuela’s PDVSA to Boost Gas Distribution

Puebla, Mexico, February 3, 2017 (venezuelanalysis.com) – Venezuelan state oil firm PDVSA announced Thursday plans to partner with private company Gavenplast to boost domestic gas production and distribution.

Under the deal, the two companies will produce one million gas cylinders annually, according to PDVSA President Eulogio Del Pino. Speaking to state media outlet AVN, Del Pino said the gas is intended for domestic use.

“We have a great challenge that is to satisfy the national gas demand … with a fair price,” he said.

Venezuela has the eighth largest proven reserves of natural gas in the world. According to the World Energy Council (WEC), these reserves are estimated at over 5000 MTOE (million tonnes of oil equivalent).

Nonetheless, some areas of Venezuela in recent years have experienced scarcity of gas cylinders for home use. Most homes in Venezuela don’t have piped gas, meaning ordinary residents are dependent on cylinders for cooking.

According to AVN, “This agreement will cover not only the deficit that exists in the manufacture of cylinders in the country, but will allow [Venezuela] to export this product to Latin America and the Caribbean.”

The cylinders will be distributed through the Local Provision and Production Committees (CLAPs). The CLAPs are partnerships between local communal councils and the government, aimed at providing basic food items and other essential goods to low-income households. 

Published on Feb 3rd 2017 at 11.19am