Shell is in advanced talks with Venezuela to expand its presence in natural gas offshore projects, in a strategy that could bolster regional gas supply and reactivate key infrastructure in Trinidad and Tobago.
Expansion of gas in Venezuela in strategic fields
According to sources close to the negotiations, the energy company Shell is in dialogue with the Venezuelan government to develop four additional areas located near Trinidad and Tobago. These areas are part of some of the largest natural gas fields in South America.
In this context, the Dragon project stands out as one of the main assets, with estimated reserves of 4.2 trillion cubic feet. The company is evaluating making a final investment decision before the end of the year.
Likewise, Shell seeks to expand its access to other fields that make up the Mariscal Sucre project, which concentrates approximately 12 trillion cubic feet of gas. Added to this is the Loran field, with some 7.3 trillion cubic feet, which is part of a cross-border system shared with Trinidad.
Integration with Trinidad and Tobago infrastructure
The operational plan involves sending gas extracted in Venezuelan waters to Trinidad and Tobago, where it will be processed and transformed into liquefied natural gas (LNG) for export.
This approach would optimize the use of the Atlantic LNG plant, in which Shell holds a 45% stake. Currently, this facility operates below capacity due to gas supply constraints.
Furthermore, Shell is already developing the Trinidadian side of the Loran-Manatee field, which facilitates technical integration between both countries through subsea connections to existing platforms.
Reconfiguration of project stakeholders
In parallel, Chevron has begun divesting stakes in certain blocks on the Venezuelan side, opening new opportunities for Shell to consolidate its presence in the area.
Additionally, negotiations include potential developments in onshore fields such as Carito and Pirital, which would expand the scope of the agreement beyond offshore gas.
However, regulatory and fiscal factors, as well as the previous participation of international companies in some blocks, could influence the closing times of the agreement.
Boost to the regional gas market
Shell’s strategy responds to the need to secure supply for LNG export projects in the Caribbean. The geographical proximity between Venezuela and Trinidad, separated by only a few kilometers, favors efficient logistical solutions.
In this scenario, the development of these resources could contribute to reactivating untapped gas reserves in Venezuela and improving the region’s export capacity.
Source: Reuters
Photo: Shutterstock