Trinidad and Tobago’s Oil Agreement with Venezuela to Proceed Despite Political Uncertainty
Energy and Energy Industries Minister, Stuart Young
The Trinidad and Tobago government has announced that its oil agreement with Venezuela over the development of the Loran–Manatee natural gas field will proceed regardless of the current political situation in the South American country.
The head of the National Electoral Council (CNE), Elvis Amoroso, said that with 80 percent of ballots counted, President Nicolas Maduro had 51 percent of the vote, compared to 44 percent for his main rival.
Background
The Loran–Manatee natural gas field is located on the continental shelf of the Atlantic Ocean and is shared by Trinidad and Tobago and Venezuela. The field is believed to hold around 10 trillion cubic feet (tcf) of natural gas, with 7.3 tcf on Venezuela’s side and the remaining 2.7 tcf on T&T’s side.
Government’s Stance
Energy and Energy Industries Minister Stuart Young said that the government is committed to developing the Manatee field, despite the political uncertainty in Venezuela. “With Venezuela, we know there is always a level of uncertainty, and the first thing we have to understand in Trinidad and Tobago is that you control what you could control,” Young said.
Young also emphasized that the government had secured an agreement with the Venezuelan government in 2019 to develop the Manatee field, and that the project is now proceeding with Shell as the contractor.
Shell’s Involvement
Shell Trinidad and Tobago Ltd has taken a final investment decision (FID) to develop the Manatee gas field, which is projected to produce a peak of 604 million standard cubic feet of natural gas daily. The company believes that LNG will play a critical role in the global energy transition, with overall demand estimated to rise by more than 50 percent by 2040.
Conclusion
The Trinidad and Tobago government’s commitment to developing the Loran–Manatee natural gas field is a significant step forward for the country’s energy sector. Despite the political uncertainty in Venezuela, the government is confident that the project will proceed as planned, thanks to the agreement secured with the Venezuelan government in 2019.
FAQs
Q: What is the Loran–Manatee natural gas field?
A: The Loran–Manatee natural gas field is a shared field located on the continental shelf of the Atlantic Ocean, with 27 percent of the field located in Trinidad and Tobago and 73 percent located in Venezuela.
Q: What is the estimated size of the field?
A: The field is believed to hold around 10 trillion cubic feet (tcf) of natural gas, with 7.3 tcf on Venezuela’s side and the remaining 2.7 tcf on T&T’s side.
Q: Who is involved in the project?
A: Shell Trinidad and Tobago Ltd is the contractor for the project, and the company has taken a final investment decision (FID) to develop the Manatee gas field.
Q: What is the timeline for the project?
A: Trinidad and Tobago is hoping to receive the first gas from Manatee by 2027.