Energy and Energy Industries Minister Warns of Uncertainty Amid US Sanctions on Venezuela
Minister’s Statement
PORT OF SPAIN, Trinidad, CMC – Energy and Energy Industries Minister, Stuart Young, speaking at the post-cabinet news conference on Thursday (CMC Photo)
The Trinidad and Tobago government said Thursday it would continue to advocate for what is best for the country and the wider Caribbean Community (CARICOM) after the United States announced a new directive eliminating oil and gas licenses for foreign companies in Venezuela.
Background
In a message posted on X, US Secretary of State Marco Rubio said he is “providing guidance” to end State Department support for licenses approved under former President Joe Biden. Port of Spain 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.
New Development
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.
Minister’s Response
Speaking at a post-cabinet news conference, Energy and Energy Industries Minister Stuart Young told reporters that the Donald Trump administration seems to have made a decision regarding an OFAC (Office of Foreign Assets Control) license granted to US oil giant Chevron. Young said that it appears at this stage that a decision has been made to reverse the license.
Government’s Position
The government has remained wholly engaged, with Young holding talks with a representative of the Shell oil company. "We continue to do the work on Dragon (and) both of us are reaching out through various contacts we have," he said. "I have reached out to the US government through specific channels here in Trinidad, and our proposals for engagement with Secretary Rubio’s office have always been part of the plan."
Government’s Commitment
Young emphasized the government’s commitment to the people of Trinidad and Tobago, stating that it is "very aware" of who the decision-makers are and will continue to work every step of the way to ensure the country’s energy security. "This deal…and cross-border gas is not for PNM (People’s National Movement), UNC (United National Congress), or any political entity. It is for you, the citizens of Trinidad and Tobago. This deal and the gas being delivered in 2027 will help us with the foreign exchange. It will help us continue paying the bills…and ensure that drugs are in the hospital."
Conclusion
The Trinidad and Tobago government is committed to advocating for what is best for the country and the wider Caribbean Community, despite the US decision to eliminate oil and gas licenses for foreign companies in Venezuela. Energy and Energy Industries Minister Stuart Young emphasized the government’s commitment to the people of Trinidad and Tobago, ensuring their energy security and access to resources.
FAQs
Q: What is the Trinidad and Tobago government’s position on the US decision to eliminate oil and gas licenses for foreign companies in Venezuela?
A: The government will continue to advocate for what is best for the country and the wider Caribbean Community.
Q: What is the status of the Dragon gas project in Venezuela?
A: The project aims to supply gas to Trinidad by 2027, but the license requires an extension to begin production.
Q: What is the US government’s position on the Dragon gas project?
A: The US government has terminated all Biden-era oil and gas licenses, including the one granted to Shell and the National Gas Company (NGC) to develop the Dragon gas project in Venezuela.
Q: How will the US decision affect Trinidad and Tobago?
A: The government is engaged with the right people and will continue to work every step of the way to ensure the country’s energy security and access to resources.
About The Author
