Venezuela is set to receive almost half of the income from the Dragon Gas deal with Trinidad and Tobago.
According to a Feb. 3 Reuters article, the terms were outlined in a license, published by Venezuela’s official gazette. “In no case may the Venezuelan State’s income from the project be less than 45% of the gross income of the licensees,” it read.
The license for the deal was signed back in December last year.
PDVSA scandal will not affect T&T Dragon Gas Deal negotiations – Young | OilNOW
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.
Trinidad’s NGC, Shell, PDVSA kickstart pipeline talks for Dragon gas project – Young | OilNOW
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.
