The Daily Journal — British energy company Shell has received authorization to extract natural gas from the Loran field, located in Venezuelan territorial waters, and export it directly to Trinidad and Tobago for processing. Trinidadian Energy Minister Roodal Moonilal announced the development before a parliamentary committee, following the signing of a production agreement last week between Caracas and the British multinational.
Recently, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License No. 50B, a measure that selectively authorizes six major global energy corporations, including Shell, to maintain and conduct oil and gas operations in Venezuela.
According to the terms presented by Minister Moonilal, the license allows Shell to export 100% of the gas produced during the first phase of development of the cross-border field to the neighboring Caribbean nation. The company will send the gas to the Beachfield processing facility in Trinidad, where operators will process an estimated initial export volume of 48.14 billion cubic meters of natural gas (equivalent to 1.7 trillion cubic feet).
The activation of this direct export route from Venezuelan gas fields to Trinidadian processing plants marks a strategic shift for the region’s energy supply, as Trinidad and Tobago currently faces declining domestic production.
“This has enormous implications for our energy sector and the economy of Trinidad and Tobago,” Minister Moonilal said regarding the agreement. He also highlighted Shell’s role in the project: “This agreement reflects the continued commitment of our longstanding partner, Shell, to work in Trinidad and Tobago and Venezuela to help advance projects, capabilities, and infrastructure that can support our mutual development.”
Trinidad and Tobago’s business community responded positively to the confirmation that Venezuelan gas will cross the maritime border. Nirad Tewarie, Chief Executive Officer of the American Chamber of Commerce of Trinidad and Tobago (AMCHAM), welcomed the removal of the regulatory uncertainty that had stalled these fields for years.
“The fact that they secured Venezuela’s agreement to allow the gas to cross the border is a huge step, and we are very excited and encouraged. This bodes well for the future of the economy,” Tewarie told local media.
However, the business representative tempered expectations regarding the implementation timeline, noting that the benefits of the imports will not materialize immediately.
“This is the first step in a long process because Shell still needs to make its final investment decision,” he said.
Tewarie estimated that, if negotiations continue at their current technical pace, Trinidadian facilities will begin to see a meaningful increase in Venezuelan gas supplies within two and a half to three years.
Given that outlook, he urged the industrial sector to prepare for the arrival of the new supply.
“We must ensure that when we see that increase in gas production, the various sectors of industry in Trinidad and Tobago are ready to absorb and utilize the gas,” he said.
