Trinidad and Tobago will negotiate the commercial terms for cross-border natural gas projects with Venezuela in what officials say must serve the country’s national interest, as policymakers seek to ease tightening domestic gas supply, according to a May 18 Energy Chamber of Trinidad and Tobago report.
Finance Minister Davendranath Tancoo told Parliament recently that the government intends to secure favorable terms for gas developments linked to the Dragon and Manakin-Cocuina fields, which sit across the maritime boundary between the two countries.
“The government would negotiate the terms of these arrangements in the best interest of the people of Trinidad and Tobago,” Tancoo said, as reported by Guardian Media and cited in the Energy Chamber’s note.
Trinidad key to monetizing Venezuelan gas as bp Loran deal advances – energy minister | OilNOW
According to the Energy Chamber, the issue is central to Trinidad and Tobago’s energy outlook, as domestic gas production from mature offshore fields continues to decline, placing pressure on liquefied natural gas (LNG) output, petrochemical operations, and power generation.
Cross-border gas has emerged as a potential near-term supply source that could help stabilize feedstock availability for Atlantic LNG and downstream industries, while supporting industrial jobs and export earnings.
The Dragon field remains one of the most significant prospects under discussion, with estimated gas reserves of around 4 trillion cubic feet. However, development has remained dependent on external regulatory approvals.
In 2025, the United States authorized Trinidad and Tobago to negotiate with Venezuela on Dragon-related gas development under sanctions conditions. However, the approval did not constitute full project sanctioning or production clearance.
The Energy Chamber noted that policy decisions now center on how Trinidad and Tobago structures fiscal and commercial arrangements for imported or cross-border gas, including potential fees, pricing mechanisms, and transit-linked revenues.
“A clear fiscal framework would help define how value is shared among producers, investors, the state and the domestic energy sector. The opportunity is large, but it also comes with geopolitical and regulatory challenges… If the country secures workable commercial terms, projects such as Dragon and Manakin-Cocuina could help improve gas availability, support downstream production and extend the life of existing energy infrastructure,” the Chamber said.
The report highlighted that the country’s role extends beyond consumption, given its LNG plants, petrochemical infrastructure and processing capacity that would be used to monetize incoming gas volumes.
“The issue is significant because cross-border gas could play a role in easing supply constraints facing Trinidad and Tobago’s energy sector… For Trinidad and Tobago, the priority will be to ensure that any agreement delivers clear national value. That means securing gas volumes, protecting the country’s processing and downstream advantage, and ensuring the fiscal terms reflect the role Trinidad and Tobago plays in monetizing cross-border resources,” the Chamber added.
