Venezuela: explosion at Muscar gas complex severely impacts energy production

The explosion at the Muscar complex caused significant damage to Venezuela’s gas and oil production infrastructure. The consequences affect light crude oil production, extra-heavy crude processing, and national gas supply.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

A major industrial accident occurred at the Muscar gas complex in Venezuela, causing significant disruptions to the country’s national energy infrastructure. The explosion, followed by a fire, destroyed a network of gas pipelines and high-pressure pipes critical to the processing and transport of hydrocarbons.

According to a preliminary report from Petróleos de Venezuela (PDVSA), the catastrophe impacted several key facilities, including the storage and treatment center for associated gas from the northern Monagas State oil fields. These fields, such as Punta de Mata and El Furrial, produce up to 150,000 barrels per day of light crude oil, which is used to dilute the extra-heavy crude of the Orinoco Belt.

Impact on Oil Production

Upstream production in the Punta de Mata and El Furrial oil zones has been severely compromised. Damaged facilities include pipelines transporting high-pressure gas to liquid extraction plants and strategic compressors. The accident disrupted the supply of light crude used to dilute extra-heavy crude oil, essential for local refineries.

A PDVSA official, speaking anonymously, described the accident as “catastrophic.” The explosion directly affected production in the Orinoco Belt, forcing PDVSA to drastically reduce oil production volumes while emergency measures are implemented to mitigate the accident’s effects.

Repercussions on Gas Supply

The Muscar complex plays a vital role in Venezuela’s national energy supply. It previously provided around 65% of the country’s natural gas, amounting to 850 million to 1 billion cubic feet per day. After the explosion, gas production associated with oil in the Oriente region dropped by 78%, from 2.3 billion cubic feet to only 500 million cubic feet per day.

This reduction paralyzed several industrial and energy facilities in the states of Anzoátegui, Sucre, and Nueva Esparta. Affected infrastructure includes gas-fired power plants, the Jose petrochemical complex, and the Metor I, Metor II, and Fertinitro plants. Additionally, the gas supply to companies in the Guayana region has been interrupted.

Challenges and Proposed Solutions

PDVSA is currently focusing on clearing debris and assessing damages. The company is also considering temporary solutions, such as installing portable flares to burn the untreated gas associated with oil. However, rebuilding the infrastructure will require significant efforts, including replacing pipelines and rehabilitating electronic and instrumental systems.

The outlook for a quick recovery remains uncertain. The accident highlights the fragility of Venezuela’s energy infrastructure and the systemic impact a major incident can have on the economy and essential services.

GTT appoints François Michel as CEO starting January 5, separating governance roles after strong revenue and profit growth in 2024.
The United States is requesting a derogation from EU methane rules, citing the Union’s energy security needs and the technical limits of its liquefied natural gas export model.
Falcon Oil & Gas and its partner Tamboran have completed stimulation of the SS2-1H horizontal well in the Beetaloo Sub-basin, a key step ahead of initial production tests expected in early 2026.
Gasunie Netherlands and Gasunie Germany have selected six industrial suppliers under a European tender to supply pipelines for future natural gas, hydrogen and CO₂ networks.
The ban on Russian liquefied natural gas requires a legal re-evaluation of LNG contracts, where force majeure, change-in-law and logistical restrictions are now major sources of disputes and contractual repricing.
The US House adopts a reform that weakens state veto power over gas pipeline projects by strengthening the federal role of FERC and accelerating environmental permitting.
Morocco plans to commission its first liquefied natural gas terminal in Nador by 2027, built around a floating unit designed to strengthen national import capacity.
An explosion on December 10 on the Escravos–Lagos pipeline forced NNPC to suspend operations, disrupting a crucial network supplying gas to power stations in southwestern Nigeria.
At an international forum, Turkmenistan hosted several regional leaders to discuss commercial cooperation, with a strong focus on gas and alternative export corridors.
The Australian government has launched the opening of five offshore gas exploration blocks in the Otway Basin, highlighting a clear priority for southeast supply security amid risks of shortages by 2028, despite an ambitious official climate policy.
BlackRock sold 7.1% of Spanish company Naturgy for €1.7bn ($1.99bn) through an accelerated bookbuild managed by JPMorgan, reducing its stake to 11.42%.
The British company begins the initial production phase of Morocco's Tendrara gas field, activating a ten-year contract with Afriquia Gaz amid phased technical investments.
The Energy Information Administration revises its gas price estimates upward for late 2025 and early 2026, in response to strong consumption linked to a December cold snap.
Venture Global denies Shell’s claims of fraud in an LNG cargo arbitration and accuses the oil major of breaching arbitration confidentiality.
The Valera LNG carrier delivered a shipment of liquefied natural gas (LNG) from Portovaya, establishing a new energy route between Russia and China outside Western regulatory reach.
South Stream Transport B.V., operator of the offshore section of the TurkStream pipeline, has moved its headquarters from Rotterdam to Budapest to protect itself from further legal seizures amid ongoing sanctions and disputes linked to Ukraine.
US LNG exports are increasingly bypassing the Panama Canal in favour of Europe, seen as a more attractive market than Asia in terms of pricing, liquidity and logistical reliability.
Indian Oil Corporation has issued a tender for a spot LNG cargo to be delivered in January 2026 to Dahej, as Asian demand weakens and Western restrictions on Russian gas intensify.
McDermott has secured a major engineering, procurement, construction, installation and commissioning contract for a strategic subsea gas development offshore Brunei, strengthening its presence in the Asia-Pacific region.
The partnership between Fluor and JGC has handed over LNG Canada's second liquefaction unit, completing the first phase of the major gas project on Canada’s west coast.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.