(Bnamericas.com) - "Venezuelan President Hugo Chávez has unveiled his 'gas revolution' that aims to expand natural gas production and consumption in the country, state oil company PDVSA said in a statement.

The plan entails tapping into Venezuela's vast natural gas reserves, which total 80% of all reserves in South America and 30% in the Americas, according to the leader.

As a result, Venezuela aims to increase natural gas output to 11Bf3/d (311Mm3/d) by 2012, the year the country is due to start exporting natural gas to Colombia.

Venezuela produces roughly 7Bf3/d, newspaper La Hora quoted Chávez as saying, but the BP Statistical Review of World Energy, which does not include gas flaring and recycling, says Venezuela was producing 2.8Bf3/d at the end of 2006.

Roughly 70% of Venezuela's natural gas output goes into oil production, meaning the country faces a natural gas deficit of roughly 1Bf3/d.

Venezuela will invest US$18bn in the next five years to increase natural gas production and supply, La Hora quoted Chávez as saying. He highlighted 10 projects that make up the gas revolution.

On top of the list is the Gas Anaco project, which entails building an 800Mf3/d-capacity gas compressor that will start operations in mid-2008. PDVSA's gas subsidiary PDVSA Gas aims to build two additional compressors and update existing plants to increase capacity another 2.4Bf3/d.

Other gas projects on Chávez's list include developing the CIGMA industrial complex for liquefaction, industrialization, petrochemicals development and extra-heavy crude processing and developing a cryogenic complex on the Zulia state coast.

Projects designed to expand consumption include: laying international pipelines; building nine community-run LPG plants designed to fill tanks; laying more than 20,000km of gas distribution pipes for residential and commercial use; developing VNG motors with an eye on public transport systems; and laying the Eje Norte Llanero pipeline connection to supply Anaco gas".