The US government has now granted energy giant Shell’s Trinidad and Tobago arm authorisation to develop a gas field based offshore in Venezuela.
In recent years, the largescale project designed to supply Trinidad with gas from Venezuela has advanced slowly, due to frequent changes in US policies.
Since 2019, the South American country and the state-run company involved (PDVSA) have been limited by US energy sanctions. As a result, foreign enterprises seeking to develop energy projects in the nation need specific licences and authorisations.
Shell has completed an exploratory maritime survey at the project called “Dragon”, which will be used to determine both pipeline design and suitable locations to drill. The new authorisation from the US Treasury is divided into three stages, the first of which allows Shell Trinidad and Tobago to negotiate with PDVSA and Venezuela through to spring 2026, However, as part of the authorisation, US companies must be involved in the development.
A British multinational oil and gas company, Shell is also a renowned lubricant manufacturer, producing a wide range of products from grease and gear oil to advanced solutions for industries like power generation.
Investigation of the Dragon project, located near Venezuela’s maritime border, has determined it has reserves of approximately 4.2 trillion cubic feet. This makes it among Venezuela’s biggest natural gas deposits and a potential source of future income for the country. With insufficient output and reserves, neighbouring Trinidad requires the gas to support its revenue-generating sectors, including petrochemicals and liquified natural gas (LNG).
