Trinidad and Tobago’s next step to access the Dragon gas field has begun, according to its Minister of Energy and Energy Industries, Stuart Young.
Speaking during the Trinidad and Tobago Energy Conference 2024 in Port-of-Spain on Jan. 22, Young reported that the National Gas Company of Trinidad and Tobago (NGC), Shell, and PDVSA (Venezuela’s state oil firm) have kickstarted development plans to facilitate the flow of gas to Trinidad.
“[Those] development plans cover such activities as the drilling of wells and the construction of the 21-kilometer pipeline to bring this gas to Trinidad,” he shared.
The license for the deal was signed back in December last year.
It involves transporting supply from the Dragon field in Venezuela to Trinidad’s Atlantic LNG plant via a Shell-owned offshore platform. Young has estimated the field could start with an output of 175 million cubic feet per day and ramp up to 350 million cubic feet per day. Up to last year, the targeted year for first gas is 2025.
The Dragon gas project would be a welcome boost for the economies of both countries, as Venezuela looks to revitalize its crisis-stricken economy, and Trinidad struggles to revive its gas industry after years of declining hydrocarbon production.
Per the license, PDVSA will receive payments from Trinidad in any currency or humanitarian aid, according to the provisions set by the U.S. It was Washington’s waiver of its sanctions regime against Venezuela that allowed for the deal to go through.
