MercoPress. South Atlantic News Agency

Venezuela/Colombia agree on tight energy network

Venezuela and Colombia agreed Thursday to build a gas pipeline linking the western shore of Venezuela's Lake Maracaibo and the Colombian town of Ballena.

The agreement was signed by Venezuela's Hugo Chavez and Colombian president Alvaro Uribe at the conclusion of a meeting in Punto Fijo, a town northeast of Caracas and close to the two countries border.

The 300 million US dollars pipeline to be operated by Venezuela' government owned oil company PDVSA will initially pump 150 million cubic feet of natural gas annually from Colombia to Venezuela, but as of 2010 the flow will be reversed with 300 million cubic feet going from Venezuela to Colombia.

At a joint press conference president Uribe said that the gas pipeline must be seen "as part of the energy integration of South America and Central America", which he pledged both countries will continue to advance.

Venezuelan president Chavez revealed that "the project is to extend the gas pipeline to the Colombian coast, reach Panama and then connect with Central America".

A more ambitious project for the construction of a pipeline that would carry Venezuelan crude and derivates to Colombian ports on the Pacific to supply Asia was also discussed at the bilateral meeting.

Venezuela the world's fifth-leading oil exporter and the US fourth supplier is anxious to reach the lucrative Asian market particularly China with which the country has signed several trade and cooperation agreements.

President Chavez praised "the generosity of Colombia" and willingness to cooperate in Venezuela's major Pacific opening project which "could also include some refineries along the Pacific coast".

Chavez and Uribe, who have sometimes clashed over Caracas's alleged sympathy for Colombian left wing rebels, described Thursday's talks as fruitful and easygoing with the visitor urging his host to come to Colombia over Christmas.

Mr. Chavez invited Mr. Uribe to the 2006 groundbreaking for the gas pipeline.