Shell’s move into Venezuela’s Loran gas field could help create a wider Caribbean gas corridor centered on Trinidad and Tobago’s energy infrastructure, according to Rystad Energy.
The research firm said Loran could connect Venezuela’s offshore gas resources with available liquefied natural gas capacity in Trinidad and Tobago. Its development would add to progress at the neighboring Manatee field and Venezuela’s Dragon project.
“Loran looks less like a standalone field and more like the missing piece in a regional gas hub strategy linking Venezuela’s resource base with Trinidad’s underutilized LNG infrastructure,” Rystad stated. “If Loran follows Dragon and Manatee into development, the Caribbean could emerge as a key gas corridor in the next decade.”
Rystad identified Shell’s Loran move as one of five major developments that shaped Latin America’s upstream sector in June. The assessment was published in its LatAm Upstream Pulse, a monthly commentary series covering regional projects, milestones, and strategic trends.
Venezuela signed five agreements with Shell on June 11. The agreements formalized the company’s participation in the first phase of Loran’s development and covered other oil and gas activities in Venezuela.
Loran contains an estimated 7 trillion cubic feet of gas and extends across the maritime boundary between Venezuela and Trinidad and Tobago. The Trinidad and Tobago portion of the reservoir is known as Manatee.
The two countries agreed in 2019 to develop their respective portions independently. Shell took a final investment decision on Manatee in July 2024, and production is expected to begin in 2027. The project is expected to reach peak output of about 604 million cubic feet per day.
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The field is expected to supply Trinidad and Tobago’s liquefied natural gas and petrochemical sectors. The country has been seeking additional gas to address supply shortages that have affected industrial output, government revenue, and foreign exchange earnings.
Dragon provides another potential source of Venezuelan gas for Trinidad and Tobago. The field would be connected by a 22-kilometer pipeline to Shell’s Hibiscus platform off Trinidad and Tobago’s north coast. The gas could then enter the country’s existing network.
Preliminary offshore surveys for Dragon began in 2024. Shell has since started seeking drilling services for four wells, with drilling targeted to begin in the second quarter of 2027, subject to a final investment decision.
