The Daily Journal.— Colombia’s new ambassador to Venezuela, Jorge Jaller, proposed that Colombia purchase Venezuelan natural gas to generate electricity and return part of the power to its neighboring country as part of a broader strategy to promote economic integration between the two nations.
Jaller outlined the proposal in an interview with El Colombiano, where he also urged Colombian companies and Ecopetrol to explore business opportunities in Venezuela.
“For me, the opportunity goes both ways. It means building an opportunity together as two nations. Not from here to there, not from there to here, but together,” he said.
Jaller said Venezuela has significant natural gas resources, while Colombia has thermoelectric power plants that could use the fuel to meet its energy needs.
“Venezuela has a lot of gas. We have thermoelectric plants that need that gas to operate and generate electricity,” he said.
Under the proposal, Colombia would purchase Venezuelan gas, use it to generate electricity, and then return half of the power to Venezuela.
“We can build trust if we buy that gas and start up our thermoelectric plants. In addition, we could return half of the electricity we generate with that gas to Venezuela, while the other half stays in Colombia. That way, both populations benefit,” he explained.
The ambassador described the mechanism as a different approach to structuring binational business deals, one that would generate benefits for both sides.
“It’s not simply, ‘I buy your gas, keep the energy it produces, Mr. Money.’ No. I buy your gas, generate electricity with my thermoelectric plants and send half of that electricity back to you. That is how we build a new binational relationship based on trust,” he said.
One percentage point of GDP in bilateral trade
The energy proposal forms part of a broader agenda through which Jaller seeks to increase trade between Colombia and Venezuela.
The ambassador set a goal of bringing bilateral trade to the equivalent of one percentage point of Colombia’s GDP, which he estimated at approximately $6.32 billion by 2030.
“I want people to demand a lot from me, to demand that we become capable of bringing trade with Venezuela to one percentage point of GDP, and that Venezuela become an engine of growth for Colombia,” he said.
Jaller also urged Colombian companies to assess investment and business opportunities in Venezuela, including those in the oil sector.
“My invitation to companies, and also to Ecopetrol, is to look at the enormous opportunity that exists in Venezuela. We don’t have 2,200 kilometers separating us; we have 2,200 kilometers connecting us,” he said.
In that regard, he called on companies to study opportunities that may emerge in the Venezuelan market, even if they ultimately determine that current conditions do not justify investment.
“If, after studying it, they decide that this is not the right time to invest, that’s valid. But they shouldn’t stop examining such a significant opportunity because the window is closing,” he said.
Ecopetrol and the Venezuelan opportunity
Jaller made the remarks as he prepares to take office as Colombia’s ambassador to Venezuela and to join Ecopetrol’s board of directors on Sept. 15, according to El Colombiano.
Regarding Venezuela, he said regulatory changes and other developments warrant deeper analysis before companies rule out investment opportunities.
“We have to pull the sheet off the ghost. We need to study Venezuela with the necessary rigor: we started on Jan. 29 with a hydrocarbons law, then came the mining law, then the OFAC license and other developments that allow us to say there is a path worth exploring,” he said.
A binational free trade zone
Jaller’s proposed integration agenda also includes mechanisms to facilitate business activity on both sides of the border.
The ambassador proposed creating a binational free trade zone instead of maintaining separate structures in Colombia and Venezuela.
“Another example is a binational free trade zone. What good does it do to have a free trade zone here in Colombia and another one over there if we can have an integrated binational zone?” he asked.
Jaller said energy integration could become one of the main pillars of that agenda, particularly because of Venezuela’s abundant natural gas resources.
When asked how much gas Venezuela could supply to Colombia, he replied: “Infinite. When I say infinite, I mean all the gas we need. All we need. Venezuela is burning gas. It’s going to waste.”
With information from El Colombiano
