Shell and BP actively pursue US licenses for the extraction of natural gas in Trinidad and Tobago and Venezuela from fields shared by both countries, Trinidad and Tobago’s Energy Minister Roodal moonilal said on Wednesday.
Trinidad, Latin America’s largest exporter of natural gas liquefied and one of the world’s major suppliers of ammonia and methane, is now focused on developing offshore oil and gas fields along Venezuela’s maritime border.
This strategy aims to secure the supply of the island and counteract its dwindling reserve.
Trinidad and Tobago faces headwinds
The development of Trinidad and Tobago’s natural gas projects has been hampered in recent years by the US’s inconsistent and changing policy towards Venezuela.
Changes in US energy and sanctions policy regarding Venezuelan reserves of gas and possible joint ventures has created an unsettling regulatory climate.
Due to this instability, international investors are extremely wary of cross-border investments in gas fields, especially those that involve shared reserves, like Loran-Manatee.
Due to this, crucial projects to boost Trinidad’s natural gas supply, which is essential for the country’s significant LNG export and petrochemical industries, have been delayed significantly. This has hampered efforts by Trinidad to maximize its hydrocarbon resources and ensure its future energy security.
Slow progress in Caribbean energy development is a reflection of the geopolitical complexity involved.
The Venezuelan government of President Nicolas Maduro halted the energy development collaboration with Trinidad and Tobago last year.
The suspension of various projects, such as joint natural gas project plans.
After the capture of Maduro in this month, US efforts to develop Venezuela’s oil sector have been accelerated.
US licensing is a requirement for project development due to Washington sanctions against Venezuela’s oil industry.
Shell and BP seek US licensing
Moonilal told reporters during the Indian Energy Week that Shell was pursuing a licence to develop Loran-Manatee.
Gas reserves in the natural gas fields are estimated at 10 trillion cubic foot (tcf).
The remaining 2.7 Tcf are located in Trinidad.
BP currently seeks a licence to develop Cocuina Manakin.
The Venezuelan portion of the field, however, is part of an inactive offshore gas project called Plataforma Deltana, with 1 trillion cubic foot of proved gas reserves.
Moonilal:
We would support the applications of companies that are based in America. The United States has been a strong ally, and we have a lot to gain from reforming.
Dragon gas
Washington authorized Shell and Trinidad and Tobago in October to move forward with the Dragon Gas Field development.
The project is located near Trinidad’s maritime border and offshore Venezuela.
Moonilal expects that production at the Dragon field will begin in the fourth quarter 2027 with a daily gas output of approximately 350 million cubic foot.
The Dragon Field in Venezuela contains the world’s largest gas reserves.
Trinidad is in need of this gas due to its lack of reserves and production. This gas will be used for its income-generating industries, including liquefied gas (LNG), and petrochemicals.
Moonilal said that Trinidad wants to collaborate and lead other Caribbean countries, such as Suriname and Guyana and Grenada, in order to accelerate natural gas development, now that their projects are operating again.
As new information becomes available, this post Shell and BP apply for US gas licenses to share Trinidad-Venezuela fields could be updated.
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