However, the revival of this cross-border energy corridor hinges on regulatory clearance from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). Ecopetrol and Interconexión Eléctrica (ISA), Colombia’s leading energy companies involved in the project, require OFAC licenses to legally conduct transactions involving Venezuelan energy assets, given existing sanctions against PDVSA. While the U.S. government granted conditional licenses to major international private oil firms in early 2026, Colombian state firms still await specific approvals to engage in imports and infrastructure rehabilitation. Ecopetrol has filed multiple OFAC license requests emphasizing the need for enabling regulations aligned with Venezuela’s recent legal reforms promoting private sector participation in hydrocarbons.
The pipeline possesses a daily capacity of up to 450 million cubic feet, a volume critical to offset Colombia’s declining domestic gas reserves, estimated to last about six more years. Complementary to the gas pipeline rehabilitation, the two countries are also discussing the restoration of the electrical interconnection through La Guajira, which would revive bilateral electricity trade disrupted for years. Initial shipments of Venezuelan liquefied petroleum gas (LPG) by truck mark interim steps pending pipeline functionality. The timeline for regulatory clearances remains uncertain due to diplomatic and geopolitical dynamics beyond technical progress. Nevertheless, recent high-level meetings between Colombian and U.S. officials signal advancing dialogue focused on regional energy integration and security.
This article was curated and published as part of our South American energy market coverage.
