Colombia will allow a natural gas unit of Venezuela's state oil company to operate within its borders, paving the way for fuel imports from its neighbor. This move is part of Colombia's efforts to secure an agreement that would enable Ecopetrol to produce Venezuelan oil and gas.

PDVSA Gas SA Sucursal Colombia, a subsidiary of Petróleos de Venezuela SA, was acquired by the Colombian government in February 2019. The company will return to Venezuelan control after an agreement was reached with creditors to settle a debt of COP$30.7 billion (approximately US$7.8 million) within the next two years, according to the Colombian regulator overseeing companies.

Colombian President Gustavo Petro aims to address an upcoming natural gas shortage partly through imports from Venezuela, starting later this year. A 224-kilometer pipeline that connects the two countries, owned by PDVSA Gas, is currently inactive and in poor condition, requiring significant maintenance before it can be operational.

The United States will decide this week whether to extend the partial lifting of sanctions on Venezuela's oil and gas industry, which have been in effect since 2019. This decision is crucial for Colombia to proceed with purchasing fuel from Venezuela without conflicting with U.S. policies.

For Venezuela, exporting gas to Colombia could provide a valuable source of revenue as the country recovers from a seven-year economic crisis.

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