Venezuela LNG Prepares to Flow

Venezuela expects to send its first cargoes of LNG to the US by 2009, as part of the country's efforts to fill an estimated surge in demand for that product in the northern market, according to a government official.

Vice Minister of Hydrocarbons Luis Vierma said his country has the potential to become a major LNG producer and exporter thanks to its 147 Tcf of proven gas, and an estimated 196 Tcf of untapped reserves.

The often delayed 4.7 million-ton-per-year Mariscal Sucre gas project is expected to come on board "towards the end of this decade" while the other major gas project -- the Deltana Platform -- will start drilling this May, Vierma said during an LNG conference in Doha.

Mariscal Sucre was stalled last year as state-owned Petroleos de Venezuela (PDV) shifted its focus to upstream projects. Project leader Royal Dutch/Shell said earlier this year that a final contract would be signed soon with PDV. Qatar Petroleum (QP) will have a 9% stake in the project, along with 30% for Royal Dutch/Shell, 8% for Mitsubishi and the remaining 53% for PDV.