Natural Gas in Venezuela: The Missing Link in the Regional Energy Transition

With over 30 years of experience in the energy industry—managing operations from the fields of Monagas to Central Asia—I have witnessed firsthand how energy powers the world. Today, as we navigate toward a cleaner energy matrix, natural gas has undeniably emerged as the key transitional fuel for this process.

Yet when we turn our eyes to Venezuela, we encounter a fascinating and challenging paradox. The country ranks among the world’s top holders of natural gas reserves, concentrating nearly 80% of Latin America’s proven reserves. With 197.1 trillion cubic feet of gas, Venezuela currently stands eighth in the global ranking—and ongoing reserve verification studies could elevate it to fourth place worldwide.

From a strategic management and investment perspective, the question we must ask is: how can we transform this enormous energy potential into tangible, sustainable development?

The Paradox of Associated Gas

Venezuela’s operational reality presents an immediate technical and environmental challenge. A large portion of its gas is associated gas—produced as a byproduct of oil extraction. Historically, due to a lack of capture and processing infrastructure, massive volumes of this gas have been flared or vented.

As I have previously noted when analyzing operations in northern Monagas, approximately 1.7 billion cubic feet of gas are burned every day—double the daily consumption of an entire country like Colombia. Despite its abundance, gas remains the least utilized energy source in Venezuela. Turning this waste into value represents perhaps the clearest impact investment opportunity in the region.

LNG and Regional Integration: A Viable Path

Venezuela’s location in the Caribbean grants it a strategic logistical advantage to supply energy-hungry markets in Europe and Asia. The key to unlocking this potential lies in Liquefied Natural Gas (LNG).

LNG is one of the most cost-effective methods for long-distance gas export. By cooling gas to -160 °C, its volume is dramatically reduced, allowing efficient transport in specialized LNG carriers. Venezuela possesses the natural conditions to become a reliable and stable supplier—if investment can be directed toward the necessary infrastructure.

Trinidad and Tobago, just across the Gulf of Paria, boasts world-class processing infrastructure but declining production. Venezuela, on the other hand, holds the raw material. Overcoming political differences and building partnerships based on complementarity would provide a rational and sustainable model for regional development.

Beyond Exportation: Social and Industrial Impact

As an executive, I have always maintained that excellence in our industry must go hand in hand with social responsibility and environmental respect. Natural gas is not merely an export commodity—it is a tool for inclusive development.

Efficient gas use could stabilize Venezuela’s national power grid, reduce dependency on imported fuels, and foster petrochemical hubs that produce fertilizers and plastics, creating skilled employment. On a social level, expanding direct gas distribution pipelines to homes can dramatically improve quality of life—particularly in rural areas that still rely on firewood.

Conclusion: Writing a New Energy Story

More than a decade ago, the Ibero-American Association of Energy Regulators (ARIAE) highlighted Venezuela’s immense gas potential. Today, with geological studies resuming and renewed interest from international companies, a new chapter is beginning.

Venezuelan natural gas is destined to become far more than an underutilized resource—it is a gateway to international cooperation and a cleaner, more secure energy future. From my position at Magnaccord Group SL, I continue to view the region with realistic optimism: the resources are there, the technology exists; what is needed now is strategic vision and ethical execution to rewrite the country’s energy story.

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About the author: Jorge Miroslav Jara Salas is the Director and President of Magnaccord Group SL, and a global energy expert with over three decades of experience leading oil and gas projects across Latin America, the United States, and Central Asia.