Trinidad/Venezuela Dragon Gas Development Update

(Welligence Energy Analytics, 25.Jan.2023) — The U.S. Department of the Treasury has granted a license to the government of T&T to receive gas from the multi-Tcf offshore Dragon gas field in Venezuela. This decision comes just two months after Chevron received the green light to resume operations in Venezuela and leaves the possibility of ending a decade-long delay in Dragon’s development.

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This is good news for T&T, where domestic gas production has been in decline for years – indeed, the lack of gas forced the shutdown of a train in 2020 at Atlantic LNG. However, while developing Dragon is technically straightforward and a prior agreement envisaged sending the gas to Trinidad via Shell‘s NCMA 1 infrastructure. This is still the most likely development solution, but timing is uncertain with above-ground obstacles like PDVSA Petróleos de Venezuela S.A. being unable to receive cash payments remaining.