Oil executives worried over lack of essential element for Venezuela expansion: power
USO•Oil executives warned that unreliable power is hindering energy expansion in Venezuela, where the electricity deficit exceeds 1,500 MW. Companies have submitted projects to use flared gas for power generation, but none have started; analysts doubt the government can restore up to 4,800 MW by year-end.
1. Power deficit hampers projects
Executives at an energy conference in Caracas said unreliable electricity is a major obstacle to oil and gas expansion. Venezuela has an unresolved power deficit of more than 1,500 MW, and outages lasting hours are worsening as demand recovers.
2. Gas plans not started
Companies have submitted projects to capture and use gas that is currently flared for power generation, but none has begun. A January legal mandate allows new energy projects to generate their own electricity, though executives said the government needs to accelerate efforts to restore capacity and repair the grid.
3. Restoration target in doubt
Electricity Minister Rolando Alcala said projects with companies including Eurobras, IMPSA, GE Vernova and Siemens Energy are progressing. A plan announced earlier this year by interim President Delcy Rodriguez targets restoring up to 4,800 MW by year-end, but analysts and experts doubt the government can meet it.
