Venezuela’s Cardón IV Gas Project: Repsol and Eni Set to Boost Production and Exports by 2031

Venezuela is making a strategic push to expand its natural gas production and export capabilities, with Spain’s Repsol and Italy’s Eni leading the charge. The two European energy giants have signed a landmark agreement with the Venezuelan government to accelerate development at the Cardón IV gas field, one of Latin America’s largest offshore reserves. The deal aims to more than double current production and position Venezuela as a key player in the global liquefied natural gas (LNG) market by the end of 2031.

The Cardón IV Consortium: A Pillar of Venezuela’s Energy Strategy

The Cardón IV project, located in the Gulf of Venezuela, is a 50-50 joint venture between Repsol and Eni. The consortium includes the Perla field, which holds an estimated 17 trillion cubic feet of gas in place, equivalent to 3.1 billion barrels of oil. Since production began in July 2015, the field has been delivering approximately 580 million cubic feet per day (mcf/d), primarily for domestic use.

Under the recent agreement, signed on March 12, 2026, Venezuela’s acting president, Delcy Rodríguez, emphasized the project’s dual role: ensuring energy sovereignty for the country while strengthening its position in the international hydrocarbons market. “The Cardón IV project will guarantee the supply of gas in our country, as well as for export,” Rodríguez stated during the signing ceremony, which was broadcast on state-run television. She similarly expressed gratitude to Repsol and Eni for maintaining operations in Venezuela despite external pressures, calling them “partners who believed in Venezuela and did not turn their backs on our people.”

Production Expansion and Export Plans

The agreement outlines a phased approach to increasing production at Cardón IV. While current output stands at 580 mcf/d, the goal is to raise capacity to 645 million cubic feet per day in the near term, with further expansion planned to support future LNG exports. According to reports from Bloomberg and Reuters, the companies aim to begin exporting Venezuelan gas by 2031, leveraging a floating LNG terminal to ship the fuel globally.

The project’s significance extends beyond Venezuela’s borders. As a founding member of OPEC and a key player in OPEC+, Venezuela has long sought to diversify its energy exports beyond crude oil. The Cardón IV expansion aligns with the country’s broader strategy to stabilize its economy through increased gas production and international partnerships. Rodríguez underscored this point, noting that Venezuela’s oil policy is guided by the principle of “guaranteeing a reliable energy supply, contributing to the balance of the international economy, and promoting multipolar cooperation in the energy sector.”

Overcoming Challenges: Sanctions Relief and Investor Confidence

The revival of the Cardón IV project has been made possible in part by recent shifts in U.S. Policy toward Venezuela. In early 2026, the U.S. Government relaxed sanctions on Venezuela’s energy sector, issuing OFAC general licenses that allowed international oil companies to resume operations. This move has been critical in restoring investor confidence, particularly for European firms like Repsol and Eni, which had maintained a presence in Venezuela despite geopolitical tensions.

For Repsol and Eni, the agreement represents a long-term bet on Venezuela’s gas potential. Both companies have prior experience in the country, with Repsol operating in Venezuela since the 1990s. The Cardón IV deal builds on earlier milestones, including a 2023 permit for the export of natural gas liquids (condensates) from the field, which laid the groundwork for the current expansion.

Economic and Geopolitical Implications

The Cardón IV project is expected to have far-reaching economic and geopolitical consequences. For Venezuela, increased gas production could provide a much-needed boost to its economy, which has been battered by years of hyperinflation, sanctions, and declining oil output. The project is also seen as a step toward reducing the country’s reliance on crude oil exports, which have been volatile due to global price fluctuations and infrastructure challenges.

On the international stage, the deal signals Venezuela’s re-emergence as a potential LNG supplier. With global demand for natural gas projected to grow in the coming decades, particularly in Asia and Europe, Venezuela’s vast reserves could position it as a competitive player in the market. Although, the success of the project will depend on sustained political stability, continued sanctions relief, and the ability to attract further investment.

Key Takeaways

• Production Boost: The Cardón IV project aims to increase gas production from 580 mcf/d to 645 mcf/d, with plans to more than double output for future LNG exports.
• Export Timeline: Repsol and Eni target 2031 to begin exporting Venezuelan gas via a floating LNG terminal.
• Economic Impact: The project is expected to support Venezuela’s energy sovereignty and provide a new revenue stream for the country.
• Sanctions Relief: U.S. Policy shifts in 2026 have enabled European companies to resume operations in Venezuela, facilitating the Cardón IV expansion.
• Geopolitical Significance: The deal reinforces Venezuela’s role in OPEC and OPEC+ while positioning it as a potential LNG supplier in the global market.

FAQ

What is the Cardón IV gas project?

The Cardón IV project is a joint venture between Spain’s Repsol and Italy’s Eni to develop one of Latin America’s largest offshore gas reserves, located in the Gulf of Venezuela. The project includes the Perla field, which has been producing gas since 2015 and holds an estimated 17 trillion cubic feet of gas in place.

Why is this agreement significant for Venezuela?

The agreement is significant given that it marks a major step in Venezuela’s efforts to expand its natural gas production and export capabilities. It also signals the country’s re-engagement with international energy markets, particularly following the relaxation of U.S. Sanctions in 2026.

How will the gas be exported?

The plan is to export the gas as liquefied natural gas (LNG) via a floating terminal. This approach allows for flexibility in shipping the fuel to global markets, particularly in Europe and Asia, where demand for LNG is expected to grow.

What challenges does the project face?

The project faces several challenges, including political instability in Venezuela, the need for sustained sanctions relief, and the requirement for additional investment to fully develop the field’s potential. Global gas price fluctuations could impact the project’s profitability.

What does this mean for Repsol and Eni?

For Repsol and Eni, the Cardón IV project represents an opportunity to expand their presence in Latin America’s energy sector. It also allows them to leverage their existing infrastructure and expertise in Venezuela while positioning themselves as key players in the country’s gas export market.

Looking Ahead

The Cardón IV gas project is a critical component of Venezuela’s broader energy strategy, with the potential to reshape the country’s economic and geopolitical landscape. While challenges remain, the agreement with Repsol and Eni underscores Venezuela’s determination to harness its natural resources for both domestic and international benefit. As the project moves toward its 2031 export target, all eyes will be on Venezuela’s ability to deliver on its promises and secure its place in the global gas market.