Trinidad and Tobago is seeking US government approval to extend a license for Shell and the National Gas Company (NGC) to pursue the Dragon natural gas venture off Venezuela’s coast, as per a Reuters report.
The Dragon field, located in Venezuelan waters near the maritime border with Trinidad, is crucial for both nations.
Trinidad seeks to secure additional natural gas supply to support its liquefied natural gas (LNG) and petrochemical industries, while Venezuela aims to generate cash flow from gas exports.
Background on the gas project
The US license for the Dragon natural gas project was first granted in early 2023 as an exemption to Washington’s sanctions on Venezuela.
This allowed NGC and Shell to move forward with planning and preparation to supply Trinidad with Venezuelan gas by 2027.
Washington later amended the license in 2023, permitting payments in hard currency or in kind to Venezuela and PDVSA for gas supplies.
The expiration date was also extended to October 2025, ensuring a longer window for project development.
The extension is critical for the Dragon project, where companies involved are seeking regulatory clarity to ensure a continuous investment process.
Final investment decisions for the project are expected by the end of this year, with production slated to begin afterward.
The Dragon project is expected to initially produce around 200 million cubic feet per day of natural gas, contributing significantly to Trinidad’s gas balance.
Shell and NGC have made significant progress towards Dragon.
The Dragon field’s gas resources meet PDVSA’s provisional estimations of necessary reserves, according to detailed seismic, geotechnical, and well data.
Shell has completed a seabed survey for the Dragon gas project to identify potential hazards and is now assessing the number and location of wells to be drilled.
The company is also working on finalizing the pipeline route to its facilities in Trinidad and planning the subsea tieback.
Political backing for energy projects
As reported by Reuters, Trinidad’s Prime Minister Keith Rowley also said recently that this project was vital to Trinidad and the wider region.
He expressed his intention to keep US officials updated on the significance of the permits for the Venezuelan gas development project.
The Trinidad and Venezuelan governments have been positive toward this project, with Trinidad Energy Minister Stuart Young and Venezuela Vice President Delcy Rodriguez both speaking directly with project stakeholders.
Young has emphasized the significant potential of the Dragon gas field, stating that its output could exceed initial projections.
If production proceeds as planned, Dragon, along with Shell’s Manatee project—located on the Trinidadian side of the border—could supply a combined 1 billion cubic feet of gas per day.
This would provide a major boost to Trinidad’s energy sector, particularly its flagship Atlantic LNG project.
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