The eagerly anticipated Dragon Gas Deal, a landmark agreement between Trinidad and Tobago and Venezuela, is facing an uncertain future due to the lingering impact of US sanctions. The accord revolves around the development of the Dragon Gas Field, strategically located on the border of the two nations. While the US government had recently lifted certain sanctions against Venezuela to pave the way for the deal, negotiations have hit a roadblock as Venezuela balks at the terms dictated by the US authorities.
The gas deal heralded as a potential game-changer for the energy landscape of both countries – especially Trinidad – has been cast into uncertainty by the complex geopolitical dynamics surrounding Venezuela. The sanction waiver by the US gave birth to a two-year license, authorising Trinidad and a group of companies, including Venezuela’s state-run oil firm PDVSA and Anglo-Dutch Shell, to revive the dormant Dragon gas field project. It has the potential to enhance Trinidad’s gas production and increase exports to neighbouring countries.
The authorisation for the project comes with stringent conditions, specifically prohibiting any direct cash payments to the government of Venezuela’s President, Nicolas Maduro, or any entities under state ownership. But this has not been accepted by the Maduro-lead administration.
Trinidad wants US to amend sanction waiver on Venezuela for Dragon gas deal | OilNOW
Recent developments have highlighted the intricate interplay between energy aspirations and political demands. The US government has attached conditions to the potential lifting of cash-related sanctions, insisting on Venezuela’s commitment to hold free and fair elections as a prerequisite.
The Dragon Gas Deal’s future now hinges on the delicate balance between energy cooperation and political transition. As Trinidad and Tobago eagerly anticipates the positive outcomes of the agreement, it remains inextricably linked to Venezuela’s electoral decisions.
The impasse underscores the intricate challenge of harmonising economic interests with geopolitical considerations. As the political and economic narratives continue to intersect, the future of Trinidad’s gas aspirations remains intertwined with the choices Venezuela makes in its electoral journey.
