Venezuela Signs First LPG Export Deal as New Leadership Signals Openness to Energy Investment

ERBIL (Kurdistan24) - Venezuela has signed its first-ever contract to export liquefied petroleum gas, a move announced by Acting President Delcy Rodríguez and reported by Bloomberg News, marking a notable development in the country’s energy sector as its interim leadership seeks to present Venezuela as open to foreign investment following the ouster of Nicolás Maduro.

Speaking at an event broadcast on Venezuelan state television, Rodríguez said the agreement represents a historic milestone.

“Today, for the first time in our history, a contract for the marketing of LPG, of gas, has been signed,” she said, according to Bloomberg. She added that the deal fulfills commitments made to former President Maduro and to the Venezuelan public, though no details were disclosed about the counterparty, volumes, or destinations involved in the contract.

Bloomberg reported that Venezuela produces liquefied petroleum gas at the José refining complex in eastern Venezuela, but output has declined in recent years due to disinvestment and frequent accidents.

That decline has contributed to shortages that have affected households across the country, underscoring the challenges facing the sector even as authorities pursue export agreements.

Much of Venezuela’s gas supply consists of associated gas, which is produced alongside oil extraction.

Bloomberg noted that while some companies operate projects to capture and use this gas, most of it is currently flared.

The report added that expanding gas exports would require political coordination with the United States, particularly in light of recent actions by President Donald Trump’s administration that resulted in the capture and removal of Nicolás Maduro.

The signing of the LPG export contract comes as Rodríguez seeks to reposition Venezuela economically and politically.

Bloomberg described the move as part of broader efforts by Rodríguez to recast the country as open for foreign investment, loosening long-standing restrictions on the energy sector as her government adapts to a new political reality after Maduro’s ouster.

That political context was examined in detail by The Wall Street Journal, which reported on Rodríguez’s evolving role in Washington’s approach to Venezuela.

According to the Journal, Rodríguez, once sanctioned and treated as a pariah by the United States during Trump’s first term, has now become Washington’s primary partner in Caracas following Maduro’s removal in a military raid on Jan. 3.

The Journal reported that Trump’s decision to work with Rodríguez allows his administration to avoid a military occupation of Venezuela that would otherwise be required to install a new democratic leadership.

At the same time, the newspaper described Rodríguez as a skilled and pragmatic political operator who, together with her brother Jorge Rodríguez, leader of Venezuela’s National Assembly, has maneuvered effectively to consolidate power.

Former Venezuelan minister Andrés Izarra, now living in exile, told The Wall Street Journal that those who view Rodríguez as ideologically rigid misunderstand her approach. “Their only principle is power,” Izarra said, adding that Rodríguez and her brother would adopt capitalism if it served their objective of ruling the country.

Diplomats and former officials cited by the Journal said Rodríguez is expected to do what is necessary to survive politically, not necessarily in ways that fully align with U.S. expectations.

Thomas A. Shannon Jr., a former senior U.S. State Department official who negotiated with Rodríguez in the past, warned against underestimating her. “Delcy is no dummy,” he said.

The Journal also detailed how Rodríguez has outmaneuvered her chief rival, exiled opposition leader María Corina Machado, whose party won presidential elections in 2024 that Maduro and Rodríguez ignored.

While Trump met Machado privately and accepted her Nobel Peace Prize medal, he did not appear publicly with her and has dismissed her capacity to govern, according to the report.

By contrast, Rodríguez has maintained direct engagement with U.S. officials.

The Journal reported that she spoke with Trump by phone and met with CIA Director John Ratcliffe in Caracas, marking the first known visit by a U.S. official to Venezuela since Maduro’s removal. Trump publicly praised Rodríguez, saying, “She’s a terrific person,” and describing their working relationship as positive.

The Wall Street Journal cautioned that Rodríguez’s strategy may involve offering limited concessions while consolidating control. Shannon said Rodríguez could provide incentives, such as oil access or prisoner releases, to keep U.S. pressure at bay while avoiding steps toward free and fair elections.

The challenges facing Venezuela’s energy sector remain significant. The Journal reported that major oil companies have been reluctant to invest since Maduro’s removal, citing political and economic instability.

After years of mismanagement, Venezuela’s petroleum industry requires substantial investment, and Trump has said he hopes to attract $100 billion from the private sector, a goal the Journal described as difficult given the country’s lack of independent institutions and democratic protections.

According to the Journal, Rodríguez has proposed cutting red tape in the hydrocarbons sector, though existing laws complicate foreign investment. Venezuela’s Information Ministry did not respond to requests for comment from the newspaper.

The Journal provided extensive background on Rodríguez’s political career, noting that she is the daughter of leftist radicals and was educated in Paris and London.

She held numerous diplomatic and ministerial posts in the early 2000s and served briefly as an adviser to Hugo Chávez before falling out with him, according to former aides. Her influence expanded significantly after Maduro assumed the presidency in 2013.

As foreign minister from 2014 to 2017, Rodríguez presided over a period marked by economic collapse, civil unrest, and a violent crackdown by security forces, the Journal reported.

Elevated to vice president in 2018, she oversaw much of Venezuela’s economic and oil-sector management amid U.S. sanctions that denied the country access to financial markets.

The Journal noted that Rodríguez spearheaded an economic liberalization drive, rolling back price controls, partially dollarizing the economy, and loosening regulations. These steps helped replenish supermarket shelves after chronic shortages, but the newspaper reported that political repression intensified during the same period.

Critics cited by the Journal accused Rodríguez of overseeing intelligence services responsible for detentions, torture, and disappearances.

Zair Mundaray, a former top prosecutor now in exile, said abuses by the intelligence service were reported to Rodríguez and that she blocked investigations. Rodríguez has not publicly responded to those allegations.

Despite her controversial record, the Journal reported that U.S. intelligence officials concluded that Rodríguez and other Maduro loyalists were best positioned to lead a temporary government and maintain near-term stability. Oil executives also encouraged Trump to support her, arguing that opposition figures lacked institutional backing.

Against this backdrop, Bloomberg’s report on Venezuela’s first LPG export contract underscores Rodríguez’s efforts to signal engagement with global markets, particularly in the energy sector. While the contract’s practical impact remains unclear, its announcement aligns with her broader strategy of portraying Venezuela as ready to do business, even as political uncertainties and economic constraints persist.