Venezuela takes action to halt gas projects and other energy agreements with Trinidad
The South American nation’s oil minister announced Monday that Venezuela will request that the president halt a broad energy development cooperation pact with Trinidad and Tobago, which includes cooperative gas projects under negotiation.
The previous government of Trinidad had been planning a number of joint gas projects with Venezuela, such as the National Gas Company of Trinidad (NGCTT.UL), which was granted a U.S. license earlier this month, and Shell’s (SHEL.L) 4.2 trillion cubic foot Dragon field.
However, Venezuelan President Nicolas Maduro has not viewed Prime Minister Kamla Persad-Bissessar’s new government as an ally.
While tensions between Washington and Caracas have increased, her new government has maintained a good relationship with the U.S. President Donald Trump’s administration since taking office in April.
In a broadcast statement, Trinidad and Venezuela’s relationship, which may help each other with their energy needs, is currently “hostile,” according to Oil Minister Delcy Rodriguez.
“In consequence, all gas agreements between Venezuela and Trinidad would be suspended,” she stated, adding that the suspension request is anticipated to be sent to President Maduro shortly.
The U.S.-approved license for Trinidad to negotiate the flagship Dragon project with U.S.-sanctioned Venezuela has been questioned by Venezuelan officials, who also claim that Trinidad will be responsible for paying for any gas shipments.
Since Washington imposed energy sanctions on Venezuela in 2019, the Dragon development, which is located in Venezuelan waters, has seen ongoing delays because to frequent changes in U.S. policy.
According to Prime Minister Kamla Persad-Bissessar, Trinidad does not require Venezuelan gas.
“We have our plans to grow our economy both within the energy and non-energy sectors,” she said Monday in an interview with Trinidad and Tobago’s News Daily.
Requests for comment from Shell, NGC, and BP (BP.L), which opens a new tab and is involved in a number of projects that include Venezuela, were not immediately answered.
The Manatee gas project is being developed independently by Shell; it crosses the ocean border into Venezuela but was authorized by the Maduro government to be developed freely on the Trinidad side. Whether the project might likewise be in jeopardy was not immediately apparent.
