Vz unrest no threat to Trinidad gas projects: Minister

Market: Natural gas
02/08/24

Increasing political instability in neighbouring Venezuela will not affect major offshore natural gas projects in Trinidad and Tobago, energy minister Stuart Young said.

The three gas projects being developed under agreements with Shell and BP "will be seen to their fruition," Young said.

Protests have erupted in Venezuela after electoral authorities named president Nicolas Maduro the winner of the 28 July election.

But several countries — including the US — declared the opposition's Edmundo Gonzalez as the winner.

Trinidad and Tobago will continue to develop the cross-border gas projects "as our economy is based on oil and gas, and we are committed to developing them and to earning the revenue streams from these projects," Young said.

But the projects "are inevitably being clouded by domestic developments in Venezuela," a Caribbean diplomat in the capital Port of Spain told Argus. "It is possible Washington will stiffen some sanctions it had moderated months ago to allow some of the gas projects to proceed."

Trinidad and Tobago and Venezuela last month signed a 20-year exploration and production agreement for the Cocuina gas field that is part of a field that straddles the countries' borders.

BP and Trinidad's state gas company NGC will develop the field.

Shell made a final investment decision on the shallow-water 2.7Tcf Manatee cross-border field, the company said last month.

Shell and NGC are developing the Dragon field that sits on the border with Venezuela and which the companies say contains an estimated 4.3Tcf of gas.

Trinidad needs gas to reverse a drop in production that has depressed LNG, petrochemical and fertilizer production.

The country's 2023 natural gas production of 2.6 Bcf/d was 3.7pc less than in 2022, according to energy ministry data.

By Canute James

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