Trinidad and Tobago, Venezuela and Shell are close to a joint venture

Trinidad and Tobago and Venezuela are continuing cross-border energy development through the Dragon Field project. Energy giant Shell will also participate in the joint project. The parties are now very close to an agreement on production for the next 25 years.

The so-called “Dragon Field” has been of interest to the countries mentioned for several years, although US sanctions imposed on Venezuela significantly complicated matters. The United States has, however, recently substantially eased its sanctions regime against the South American country. This, together with an initiative by Trinidad and Tobago, helped bring about the easing of sanctions, which became apparent early this year when a license was granted to develop production at the site. The United States thus accommodated its Caribbean partner, which argued that the project would strengthen regional energy security.

Trinidad and Tobago, Latin America's largest LNG exporter, is represented by the National Gas Company of Trinidad and Tobago (NGCTT), while Petróleos de Venezuela, S.A. (PDVSA) represents Venezuelan interests. As already mentioned, the two countries are joined by multinational company Shell. Since NGCTT and Shell already jointly operate the Hibiscus production platform, they are not entirely new partners. The Dragon Field is part of Venezuela's Mariscal Sucre complex, which includes the Patao, Mejillones and Rio Caribe fields.

The planned area is estimated to contain about 118 bcm of natural gas. The original plan envisaged building a 17-kilometer pipeline connecting the field to the Hibiscus platform. The pipeline is expected to cost 100 million dollars to build. However, according to the latest reports, a second line is also under consideration, which would run to Guiria on Venezuela's eastern coast. In that case, it could be connected to Point Fortin, Trinidad's LNG refinery. The first deliveries are currently expected to begin in 2025.