Trinidad and Tobago’s Energy Sector

Prime Minister Stuart Young speaking at the weekly cabinet news conference on Thursday (CMC Photo)

Introduction to the Energy Sector

PORT OF SPAIN, Trinidad, CMC—Prime Minister Stuart Young said Thursday he held “successful” discussions with the United States Secretary of State, Marco Rubio, on Wednesday and that he remains confident that Trinidad and Tobago’s oil agreements with Venezuela to develop the energy sector will not be significantly affected.

Young, speaking at the end of the weekly Cabinet meeting, told reporters that during his meeting with Rubio in Jamaica, Port of Spain had been able to advocate what is best for the country and the wider Caribbean Community (CARICOM) after Washington had earlier announced a new directive that eliminates oil and gas licenses for foreign companies in Venezuela.

Trinidad and Tobago’s Relationship with the United States

“I took the opportunity to start by emphasizing that Trinidad and Tobago is an ally of the United States and the importance of the relationship between Trinidad and Tobago and the United States,” Young told reporters. We are also making it clear that Trinidad and Tobago is seven miles off the coast of Venezuela.

“We are the closest Caribbean island to the South American continent, and that is the role we play in that relationship between Venezuela, the United States, Europe, etc. It was recognized that Trinidad and Tobago is a leader in CARICOM,” Young told reporters.

Dragon Gas Project

Trinidad and Tobago has been planning to request an extension from Washington for a license granted to Shell and the National Gas Company (NGC) to develop the Dragon gas project in Venezuela.

The license, issued in early 2023, allows the companies to plan the project. The project aims to supply gas to Trinidad by 2027. The Dragon Field is located in Venezuelan waters near the maritime border with Trinidad.

In 2023, the US amended the license to permit payments to Venezuela and its state company, PDVSA, in hard currency or kind, extending its expiration to October 2025. Shell and NGC require an extension to begin production following their final investment decision (FID), which is expected this year.

Discussion with US Secretary of State

Following the talks between Young and Rubio, US State Department spokesperson Tammy Bruce said the American official had thanked Prime Minister Young for “Trinidad and Tobago’s cooperation to promote energy security, deepen our security partnership, and enhance coordination on the deportation of illegal aliens.”

Young said that during the meeting, “there was mutual respect and an understanding of both countries’ positions on specific policy matters.

“It gave me…the opportunity firsthand to discuss the matters in energy with the Secretary of State. They had as one of the items as did we, the need to discuss energy security, not only for us here domestically, but throughout the region, and as I emphasized, we also do supply LNG (liquified natural gas) products to Chile in South America, …and in the past to the eastern seaboard of the United States”.

Outcome of the Discussion

Young said he then took the discussion to the “Dragon gas deal, to our relationship with Venezuela and emphasized the importance of it, not only to Trinidad and Tobago, but I was able to set out how it will also affect the rest of the CARICOM region because of the critical role we play in supporting some of our CARICOM brother and sister nations throughout the region.

“That was accepted,” Young said, adding, “Yesterday was a good day for Trinidad and Tobago.

As a result, he was able to get into some level of “granular detail and discuss with the Secretary of State, who is one of the prominent people who is going to be charged with determining the policy to deal with Venezuela, and particular energy going forward, exactly how this transaction is structured, the work we have already done with Shell to make it a reality, and the effects that I will have, in particular on the rest of the region.

Other Energy Projects

Young said Trinidad and Tobago is making sure that “all of the eggs in the gas sector are not …in the Dragon basket” and welcomed BP Trinidad and Tobago’s (bpTT) announcement on Thursday regarding the Ginger gas development and exploration success at its Frangipani well.

The company said that taking FID on Ginger and discovering gas at Frangipani are BP’s latest demonstrations of upstream activity this year, aligning with its strategy to grow its oil and gas business.

THE Ginger gas development off the southeast coast of Trinidad, which is expected to produce an average of 62,000 barrels of oil equivalent per day, has officially been green-lit by bpTT. It said this project is one of its ten major projects slated to start in the next two years and that the first gas for the Ginger project is anticipated in 2027.

Conclusion

In conclusion, the discussion between Prime Minister Young and US Secretary of State Rubio was successful, and Trinidad and Tobago’s oil agreements with Venezuela are not expected to be significantly affected. The country is also making progress on other energy projects, including the Dragon gas project and the Ginger gas development.

FAQs

Q: What was the outcome of the discussion between Prime Minister Young and US Secretary of State Rubio?

A: The discussion was successful, and Trinidad and Tobago’s oil agreements with Venezuela are not expected to be significantly affected.

Q: What is the status of the Dragon gas project?

A: The project is continuing, and Shell and NGC require an extension to begin production following their final investment decision (FID), which is expected this year.

Q: What is the expected production of the Ginger gas development?

A: The Ginger gas development is expected to produce an average of 62,000 barrels of oil equivalent per day.