Under U.S. Pressure, Venezuela Seeks Colombian Funds to Reopen Gas Trade

Venezuela finds itself cornered by escalating U.S. sanctions that squeeze its oil earnings and choke foreign investment.

In response, Caracas has turned to its long-time neighbor—Colombia—to bankroll the revival of cross-border gas infrastructure that could transform regional trade.

Facing a crippling decline in oil revenue, Venezuela needs fresh cash to repair and reverse the Antonio Ricaurte pipeline, rebuild compressor stations and expand its Perla gas field.

Instead of footing the bill itself, Caracas proposes that Colombia cover most of the US $35–40 million repair costs in exchange for guaranteed gas supplies.

This deal would serve dual purposes for Venezuela. First, it shifts the financial burden to Colombia just as U.S. sanctions limit Venezuela’s ability to secure loans or attract private investors.

Second, it binds Colombia economically to Venezuela’s energy sector—making Bogotá less likely to join any further U.S.-led sanctions or diplomatic pressure.

Under this arrangement:

• Colombia invests in Venezuelan gas fields and pays for pipeline rehabilitation upfront.
• Venezuela commits to deliver gas at preferential rates, ostensibly to balance its persistent US $456 million trade deficit with Colombia.
• The two governments negotiate a long-term supply contract that locks in Colombian payments for the next decade.

For Colombia, the pitch comes at a time of its own energy crunch. Drought-damaged hydropower and aging gas wells have left Bogotá scrambling for reliable supplies.

By agreeing to Venezuela’s terms, Colombia secures a strategic gas corridor—but also risks legitimizing Caracas’s maneuver to dodge U.S. economic isolation.

In Caracas, officials frame the deal as a win-win: Colombia gains energy security while Venezuela wins much-needed foreign exchange.

Yet behind the rhetoric lies Caracas’s urgent bid to exploit its neighbor’s vulnerability and sidestep Washington’s sanctions—forcing Colombia to underwrite the very infrastructure Venezuela can no longer afford on its own.

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