When Venezuela comes up during conversation about energy, talk is usually centered on oil. However, the country’s estimated 196 trillion cubic feet (Tcf) of proven natural gas reserves should not be overlooked, especially when it comes to export opportunities, an expert said.

Venezuela could become a natural gas hub, said Antero Alvarado, managing partner for the Gas Energy Latin America consultancy. Speaking during a webcast July 29, he said the state-owned oil company PDVSA and private companies are pushing forward with projects onshore and offshore that could provide gas for nearby countries.

“We have three main markets for exports,” Alvarado said. These are the Colombian, Antillean and Trinidadian markets. “Exporting gas will be a very fast way to improve our industry.”

But that could prove challenging, considering Venezuela’s oil industry consumes about 70% of the about 7.5 Bcf of gas produced daily—including for gas injection at oil-focused wells. Plus, incentives are lacking. Like oil, Henry Hub natural gas prices have dropped, falling from an average of $4.80 per million British thermal unit (MMBtu) in June 2010 to $2.78/MMBtu in June 2015.

The price is even less for Venezuelan producers, which are paid in local currency. That, he said, leaves little incentive for companies to increase production or for Venezuela to attract new investment.

In addition, “producing gas in Venezuela is not the same in all areas,” Alvarado said.

In western Venezuela, where wells have been producing mostly oil for the last 90 years, reservoirs have high hydrogen sulfide content, which can be dangerous, Alvarado explained. Fields here are declining, too. In the central Guarico State area, where Total (TOT) is developing the Yucal Placer gas field, the carbon dioxide level is about 20%, making production expensive.

In the northeast areas of Anaco and North Monagas, PDVSA is the main producer. So gas for the most part is reinjected to boost oil production.

But developments underway, including the massive Perla Field, provide opportunities to grow production.

Cardon IV (Perla): Repsol and partner Eni in July launched first production from the Perla Field located in the Cardon IV Block in shallow-water Gulf of Venezuela. Production is expected to go from 150 MMcf/d to 450 MMcf/d by year-end for local consumption, Repsol said in a news release. By 2020, production will rise to 1,200 MMcf/d until the contract ends in 2035.

Discovered in 2009, Perla holds an estimated 17 Tcf of gas in place. So far, seven of 26 planned wells have been drilled in the Cardon Block.

PDVSA is the lone buyer of the gas, which could flow to western Venezuela and onto Colombia via pipeline, Alvarado said. However, that remains to be seen. In the past, Venezuela has been obligated to export gas to Colombia, but has not delivered. At issue, he said, was the need for gas to be compressed before being exported and perhaps Venezuela needs such as fueling power plants, which currently rely heavily on diesel.

Mariscal Sucre: Efforts continue at the PDVSA 100%-owned and operated Mariscal Sucre gas project. According to PDVSA’s website, the project includes drilling 36 wells, constructing two production platforms and installing subsea production systems along with other needed marine pipelines and gas processing facilities. The project, which develops the Dragon, Patao, Mejillones and Rio Caribe fields, could produce up to 1,200 MMcf of gas and 18 MMbbl/d of condensate.

Currently, only one field—Dragon—is able to produce, Alvarado said, noting PDVSA’s past production failures. But four wells and subsea infrastructure connecting the field to Guiria in east Venezuela are complete. The company is looking for project partners, he said.

Plataforma Deltana: Chevron (CVX) is leading development efforts in the Plataforma Deltana region offshore Venezuela near Trinidad with interest in two blocks.

“The Loran Field in Block 2 and the Manatee Field in Trinidad and Tobago form a single cross-border field along the maritime border of Venezuela and Trinidad and Tobago,” Chevron said on its website. “The two countries signed cross-border agreements in 2013, and in 2014, work continued on maturing commercial development concepts.”

Other players in the area, which is divided into five blocks, include partner PDVSA, Total and Statoil (STO).

Trinidad, where gas production has declined, already has infrastructure in place to produce gas, Alvarado said, but a subsea gas line is needed.

“Venezuela has large [gas] reserves, maybe the eight largest in world,” Alvarado said. “That doesn’t mean we have huge gas available for market.” But projects are coming online and more are set to come online in the coming years. “Venezuela in the midterm can become a hub.”

Velda Addison can be reached at vaddison@hartenergy.com or via Twitter @veldaaddison.