Trinidad and Venezuela begin gas trade talks

PORT OF SPAIN, October 11, 2023 – Trinidad and Tobago has begun price negotiations for natural gas imports from Venezuela, Reuters reported on Monday.

Trinidad’s Minister of Energy and Energy Industries Stuart Young briefed parliament on the status of the prolific Dragon gasfield project on Monday.

The asset sits under Venezuelan waters and is believed to contain 4.2 tcf (118.94 bcm) of natural gas.

Should the talks be successful, energy giant Shell, Trinidad’s National Gas Company and Venezuela’s state-run Petróleos de Venezuela (PDVSA) are expected to sign a gas licence and a production sharing agreement for the project.

Additionally, Young said talks have included the possibility of importing gas from the bordering Loren field.

Trinidad expects the Dragon field to supply around 150 mcf (4.25 mcm) per day of gas to the country at full production.

According to Reuters, the project has been stalled due to lack of investment and sanctions imposed by the USA on Venezuela.

In January 2023, Trinidad and Tobago was granted a licence by the US government to develop the Dragon field.

In September 2023, the two nations signed a profit sharing agreement to jointly exploit the development.

Shell is leading the development of the 48.4-square-kilometre Manetee field, Trinidad and Tobago’s portion of the Dragon gasfield.

McDermott International signed a FEED contract with Shell for works on the Manatee gas development project in March 2023.

Shell operates the Manatee field with a 100% stake under a 25-year contract.

Read our latest interview with Minister of Energy and Energy Industries Stuart Young here.

Read our latest insights on: