Trinidad and Tobago plans to request an extension from the US Government for a licence granted to Shell and the National Gas Company (NGC) to develop the Dragon gas project in Venezuela, reported Reuters, citing sources.
The licence, initially issued in early 2023, allows the companies to proceed with planning the project, which aims to supply gas to Trinidad by 2027.
The Dragon field is located in Venezuelan waters near the maritime border with Trinidad.
In 2023, the US amended the licence to permit payments to Venezuela and its state company PDVSA in hard currency or in kind, extending its expiration to October 2025.
Shell and NGC require an extension to begin production following their final investment decision (FID) expected this year.
Dragon’s initial production is projected at approximately 200 million cubic feet per day.
Shell and NGC have analysed seismic, geotechnical and well data, confirming the presence of at least 4.2 trillion cubic feet of gas.
Shell completed a seabed survey to identify drilling sites, pipeline routes and subsea tieback plans.
NGC deferred licence extension inquiries to Trinidad’s Government, while Shell declined to comment.
PDVSA, Trinidad’s Energy Ministry, and the US Treasury Department have not responded to requests for comment, the media outlet said.
The US has imposed sanctions on the Venezuelan oil and gas industry, which is predominantly overseen by PDVSA. This implies that nations such as Trinidad and private operators must obtain licences from the US in order to export or provide revenue to entities that have been sanctioned, including the Venezuelan Government, the Central Bank and PDVSA.
Trinidad seeks the gas to enhance its LNG and petrochemical sectors, while Venezuela anticipates cash flow from gas exports.
Venezuelan President Nicolas Maduro has criticised US sanctions as illegitimate, blaming them for economic hardships.
If negotiations yield favourable prices, Dragon could generate $30m ($b1.9bn) in monthly revenue, with 20% going to Venezuela as royalty payments, according to consultancy Gas Energy Latin America.
Trinidad’s Energy Minister, Stuart Young, stated last year that Dragon’s potential output could exceed initial estimates.
Combined with Shell’s Manatee project, located on Trinidad’s side of the border, the projects could supply one billion cubic feet of gas per day to Trinidad and its Atlantic LNG project.
“Trinidad and Tobago to seek US licence extension for Dragon gas project in Venezuela” was originally created and published by Offshore Technology, a GlobalData owned brand.
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Publish date : 2025-02-25 04:10:00
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