Shell Eyes Venezuelan Gas to Revive Trinidad and Tobago’s Energy Sector

Shell Eyes Venezuelan Gas to Revive Trinidad and Tobago’s Energy Sector

Shell plc is moving closer to securing access to major natural gas reserves in Venezuela, a development that could provide a critical lifeline to Trinidad and Tobago’s struggling energy sector.

The energy giant is currently engaged in advanced discussions with Venezuelan authorities to develop several offshore gas fields near Trinidad and Tobago, including the highly anticipated Dragon gas field and other reserves within the Mariscal Sucre project. Together, these fields are estimated to hold tens of trillions of cubic feet of natural gas. 

If finalised, the plan would see Venezuelan gas transported to Trinidad for processing and export as liquefied natural gas (LNG), offering a much-needed boost to domestic production. The initiative is expected to support operations at the Atlantic LNG facility, in which Shell holds a significant stake, and which has been operating below capacity due to ongoing gas shortages. 

Energy analysts say the deal could help extend the life of Trinidad and Tobago’s energy industry, which has been facing declining domestic gas output. The Dragon field alone is estimated to contain around 4.5 trillion cubic feet of natural gas and is viewed as a key component in addressing supply gaps. 

A central element of the strategy is the cross-border Loran-Manatee field, which spans both Trinidad and Venezuelan waters. Shell is already developing the Trinidad side and is now seeking to expand operations into Venezuelan territory, potentially linking new production to existing infrastructure.

The development would mark a significant shift for Trinidad and Tobago, effectively positioning the ქვეყან as a net importer of natural gas to sustain its downstream industries. While this could stabilise LNG and petrochemical output, much of the upstream revenue would flow to Venezuela through taxes and royalties.

Despite these trade-offs, industry stakeholders agree that new gas supplies are urgently needed, as several petrochemical plants continue to face disruptions due to limited feedstock.

However, challenges remain. The project is still subject to geopolitical and regulatory hurdles, including the need for approvals tied to U.S. sanctions on Venezuela’s energy sector. These restrictions have delayed progress in the past and could still impact timelines for full-scale development. 

With global LNG markets facing increasing uncertainty, the potential agreement is being viewed as a strategic opportunity for Trinidad and Tobago to stabilise production, protect key industries, and reposition itself within the global energy landscape.

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