Trinidad and Tobago Seeks US License Extension for Venezuela Gas Project

Trinidad and Tobago is seeking a license extension from the Trump administration for Shell and the National Gas Company's Dragon gas project in Venezuela, which aims to supply gas to Trinidad by 2027. The original license was granted in early 2023 as an exemption to U.S. sanctions on Venezuela and was amended to allow payments in hard currency or in kind to Venezuela’s state oil company, PDVSA, with the license set to expire in October 2025. Shell and the National Gas Company need this extension to initiate production following their final investment decision, expected later this year, with initial output projected at around 200 million cubic feet per day. The project is considered vital for enhancing Trinidad's energy security and could generate significant revenue, with a portion going to Venezuela as royalties. Despite U.S. sanctions, the administration has previously granted licenses to foreign operators, highlighting the geopolitical complexities surrounding energy developments in the region. Trinidad’s Prime Minister has emphasized the importance of maintaining U.S. licenses for regional energy security in discussions with Washington.