Trinidad targets US licence extension for Venezuela gas project

PORT OF SPAIN, February 26, 2025 – Trinidad and Tobago plans to request an extension from the Trump administration for a US licence allowing Shell and National Gas Company of Trinidad and Tobago Limited (NGC) to develop Venezuela’s Dragon gas project, Reuters reported on Tuesday.

The project will see gas exported to Trinidad and Tobago, which is seeking feedstock to support its LNG and petrochemicals industries. Deliveries should begin in 2027.

The USA first granted the licence in early 2023 as an exemption to sanctions on Venezuela, enabling Shell and NGC to advance planning. In October, the licence was extended to 2025.

The two companies will need an extension to proceed with production once they make a final investment decision on the project, expected this year.

“This is a matter of regional energy security,” Trinidad’s prime minister Keith Rowley said. “Our government will soon brief the Trump administration on the importance of maintaining US licences for Venezuelan gas development.”

Shell and NGC have gained access to seismic, geotechnical and well data from the Dragon field and are confident that at least 119 bcm (4.2 tcf) of gas—an estimate from Venezuela’s PDVSA—exists, Reuters reported.

If supply contract negotiations between Trinidad, Venezuela and Shell yield prices in line with recent Venezuelan gas deals, Dragon’s volumes would generate around USD 30 million per month in revenues, with 20% allocated to Venezuela as royalty payments, according to consultancy Gas Energy Latin America.

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