Flagship Offshore Gas Project Between Venezuela and Trinidad and Tobago Continues Despite U.S. Pressure

Despite increasing pressure from the United States on sanctioned Venezuela and uncertainty surrounding the extension of a license for a flagship offshore gas project between Venezuela and Trinidad and Tobago, companies involved in the project have not slowed down their work, according to Trinidad Prime Minister Stuart Young.

During talks with U.S. Secretary of State Marco Rubio, who is currently visiting South American and Caribbean countries, Young noted that the “landscape is changing,” alluding to the recent imposition of secondary tariffs on importers of Venezuelan oil and gas by Washington.

The gas project, located in Venezuelan waters and led by Shell and Trinidad’s National Gas Company, received a U.S. license in 2023. The license is set to expire in October, and there has been uncertainty regarding its extension. The companies involved consider the extension crucial to securing first output once a final investment decision is made, which could happen as early as this year.

Despite the lack of commitment from the United States to extend the license, work on the project continues, with the possibility of first production as early as next year. In the meantime, Trinidad’s government is looking to enhance its energy security by purchasing equipment from U.S. providers, though specific details have not been disclosed.

As the situation unfolds, stakeholders in the project remain optimistic about its progress and the potential benefits it could bring to both Venezuela and Trinidad and Tobago. The project represents a significant investment in the region’s energy infrastructure and has the potential to strengthen economic ties between the two countries.

With ongoing developments and evolving geopolitical dynamics, the future of the flagship offshore gas project remains uncertain. However, the commitment of the companies involved and the support of the governments of Venezuela, Trinidad and Tobago, and the United States will be crucial in determining its success.

Stay tuned for more updates on this developing story.

Sources: Reuters