Trinidad and Tobago gains US approval for gas talks with Venezuela
The United States has authorised Trinidad and Tobago to negotiate a long-delayed natural gas project with Venezuela, marking a significant shift in Washington’s regional energy policy.
The move allows the Caribbean nation to work alongside the oil major Shell on developing the Dragon gas field, located in Venezuelan waters near the maritime border with Trinidad, without violating existing US sanctions.
The licence, issued by the US Treasury’s Office of Foreign Assets Control (OFAC), was announced on Thursday by Trinidad’s Attorney General John Jeremie. It represents a crucial opportunity for Port of Spain to secure new gas supplies at a time when domestic production has dropped by almost 30 per cent since 2015, threatening the future of the country’s petrochemical and liquefied natural gas (LNG) industries — key pillars of its economy.
Under the six-month authorisation, Trinidad and Shell are permitted to begin talks with Venezuela’s state company PDVSA, but under strict conditions. The US has made clear that the project must not provide any “significant benefit” to President Nicolás Maduro’s government. A second Treasury document extends the deal’s potential timeline into April 2026, outlining a phased process for development that includes participation from US companies.
The Dragon field holds an estimated 4.2 trillion cubic feet of gas, making it one of Venezuela’s largest reserves. Its exploitation was halted years ago due to sanctions and political instability in Caracas. For Trinidad and Tobago, access to that resource could act as a lifeline for the country’s energy-dependent economy, described by former energy minister Kevin Ramnarine as a “salvation table” — though he warned its success depends on both political will and US flexibility.
Beyond economics, Washington’s decision reflects a pragmatic recalibration of its Caribbean strategy: maintaining pressure on Maduro while supporting regional partners facing energy insecurity. For Trinidad and Tobago, the authorisation opens a narrow but vital window — six months to turn diplomatic approval into a concrete deal, in a Caribbean increasingly shaped by energy geopolitics and great-power rivalry.
This story is written and edited by the Global South World team, you can contact us here.
