Young: Shell's final decision pending on Dragon Gas investment

ENERGY Minister Stuart Young says energy multinational Shell has not yet taken a final investment decision with respect to the monetisation of the Dragon Gas field in Venezuela.

He made this comment in the House of Representatives on November 15.

Young said, "This decision does not arise until various studies and reports are completed."

He told MPs, "These studies and reports are in progress and on schedule at this time pursuant to the terms of the licence granted by the government of Venezuela."

Young said, "As was recently announced, there are marine survey vessels currently surveying the Dragon field and the potential seabed pathways for for the sub-sea pipeline from the Dragon field to the Hibiscus platform (located in TT waters)."

He added, "Engineering works and procurement exercises are ongoing, as scheduled and as expected.

The Dragon deal would see TT developing the field which is estimated to produce approximately 150 million standard cubic feet of gas a day.

The gas is supposed to be imported through a billion-dollar pipeline to the Hibiscus platform off the northwest coast of TT.

The platform is jointly owned by the government, NGC and Shell.

On December 21, 2023, the Venezuelan government issued the licence to the National Gas Company (NGC) and Shell for the development and export of natural gas from the Dragon gas field to TT.

The Office of Foreign Assets Control (OFAC), which falls under the US Treasury, played a key role in the granting of this licence.

The licence was granted under the Joe Biden Administration.

Concerns were raised about whether the Dragon project could be in jeopardy after Donald Trump won the US presidential election on November 4.

The US$1 billion Dragon gas deal was first signed between TT and Venezuela in August 2018. But it was left in limbo after the US imposed sanctions on Venezuela in 2019.

Trump was president at that time.

In a letter to Trump on November 6, the Prime Minister said, "The Republic of Trinidad and Tobago and the United States of America share a long and enduring relationship, founded on deep ties across many sectors, including trade, security, culture and people-to-people exchanges."

Dr Rowley added, "We look forward to further strengthening our co-operation in the years ahead."