The U.S. government has amended the Dragon gas license to allow Venezuela’s state-run PDVSA to receive payment from Trinidad and Tobago in any currency or in humanitarian aid.
The United States had said any cash payments to the Venezuelan government or its state-owned entities would not be allowed, under a partial waiver of its sanctions regime to facilitate the project. The Venezuela side had protested this arrangement. Trinidad had advocated for an amendment to the sanction waiver.
According to a statement from the TT Energy Chamber welcoming the move, the amended license extends through to October 25, 2025.
“This is a very significant development for the energy industry in Trinidad and Tobago. The announcement represents an important further milestone in the plans to import natural gas from Venezuela for use in our well-developed existing downstream gas industry and LNG [liquid natural gas] export facilities,” the Chamber said.
Shell will be operating the Dragon field. The gas, according to the TT Minister of Energy, Stuart Young, will be brought to the existing Hibiscus platform for onward transmission to plants in the country.
The Dragon field could start with an output of 175 million cubic feet per day and ramp up to 350 million cubic feet per day.
The development carries significant potential to augment Trinidad’s gas production capabilities.
