Trinidad and Tobago Gets U.S. Green Light to Develop Offshore Venezuela Natural Gas

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The U.S. has granted Trinidad and Tobago a permit allowing the island nation to develop Venezuela's Dragon offshore natural gas field, according to Reuters.

Trinidad and Tobago Prime Minister Keith Rowley said during a press conference last week his country had sought the license from the U.S. Treasury Department.

Following discussions beginning last year, Rowley spoke with U.S. Vice President Kamala Harris on January 24. "The Vice President conveyed to the Prime Minister that the Treasury Department would take action to help meet the region's long-term energy needs," according to a White House statement.

The Dragon field is part of the Mariscal Sucre project, located offshore Venezuela's Sucre state, near Trinidad and Tobago's maritime waters. The project has an estimated capacity to produce 1.2 billion cubic feet of natural gas per day.

Rowley also said that following the issuance of the license, the "relevant parties can progress with their plans to result in natural gas from Venezuela, eventually flowing for the first time from these reserves to Trinidad and Tobago and then onto the Caribbean and European markets."

Several details of the plan have yet to be ironed out by Trinidad and Tobago, Venezuela, and Shell plc (NYSE:SHEL) (London, England), which also is participating in the Dragon project. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Database can click here for a list of related project reports.

The U.S. imposed energy sanctions on Venezuela in 2019, preventing international companies from engaging in energy operations with the country without the risk of sanctions. The move on the Dragon field follows the easing of sanctions on Chevron Corporation (NYSE:CVX) (San Ramon, California), which was granted a license in November to resume operations and export oil from Venezuela.

According to the U.S. Energy Information Administration (EIA), Venezuela has the 10th largest natural gas reserve in the world, with some of its most prolific gas fields located offshore in the Gulf of Paria between Venezuela and Trinidad and Tobago. Currently, however, Venezuela's natural gas production is mainly associated with oil production, which has declined over the last few years.

Trinidad and Tobago is one of the world's leading major natural gas producers and liquefied natural gas (LNG) exporters. Between January and September last year, Trinidad and Tobago produced 2.7 billion standard cubic feet per day, with half of that amount converted to LNG.

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