Embedded Files
Advertise with Aurax News — Reach a Global Audience Today.
Trinidad and Venezuela Advance Major Gas Projects to Revive LNG and Petrochemical Output
Trinidad and Venezuela Advance Major Gas Projects to Revive LNG and Petrochemical Output
By Aurax Desk | April 16, 2026 | 2 min read
Talks between Trinidad and Tobago and Venezuela are accelerating on a series of cross-border and offshore gas projects that could unlock billions of cubic feet of natural gas, offering a critical lifeline to the country’s LNG and petrochemical industries amid declining domestic supply.
Offshore gas platforms in the Caribbean, representing cross-border energy development between Trinidad and Venezuela.
Negotiations between Trinidad and Tobago and Venezuela over several major natural gas developments are gaining momentum, signalling a potential turning point for the Caribbean nation’s energy sector.
At the centre of discussions are key offshore gas fields, including the Loran-Manatee and Dragon projects, which together hold trillions of cubic feet of natural gas. These developments are expected to significantly boost feedstock for Trinidad’s liquefied natural gas (LNG) plants and downstream petrochemical industries.
Trinidad and Tobago, the region’s largest LNG exporter, has been grappling with declining natural gas production in recent years. The country’s flagship Atlantic LNG facility has operated below capacity due to supply shortages, forcing the shutdown of one processing train. New gas from Venezuela is seen as critical to reversing that trend and restoring output.
Loran-Manatee gas field spanning Trinidad and Venezuela’s maritime border.
The cross-border Loran-Manatee field, which straddles the maritime boundary between the two countries, contains an estimated 10 trillion cubic feet of gas, with roughly 7.3 trillion on Venezuela’s side and 2.7 trillion on Trinidad’s side. Production from the Trinidad-controlled Manatee portion is expected to begin around 2027, supplying significant volumes to domestic facilities and helping stabilise energy output.
Energy major Shell has already moved to expand infrastructure to support the project, increasing pipeline capacity to as much as 1 billion cubic feet per day to transport gas to Trinidad’s Beachfield facility. Discussions are also ongoing about potentially developing the Venezuelan Loran reserves alongside Manatee as a unified project to maximise efficiency.
Attention is also focused on the Dragon gas field, located entirely in Venezuelan waters and estimated to hold around 4 to 4.5 trillion cubic feet of gas. Long delayed by sanctions and regulatory challenges, the project has gained renewed momentum following recent policy shifts and licensing approvals, allowing companies to move forward with development plans.
Atlantic LNG facility in Trinidad, which depends on new gas supplies to restore full output.
Beyond these projects, negotiations are expanding to include additional offshore reserves linked to Venezuela’s broader gas potential, with companies exploring ways to bring more supply to Trinidad for processing and export. The goal is to revitalise the country’s LNG sector and ensure steady feedstock for ammonia and methanol production.
If successfully executed, these projects could restore full operations at Atlantic LNG, increase exports, boost government revenue, and reinforce Trinidad and Tobago’s role as a regional energy hub. The country has the capacity to process billions of cubic feet of gas daily, but current production levels remain below that threshold due to supply constraints.
However, several challenges remain, including the need for U.S. licences tied to sanctions on Venezuela, complex commercial arrangements, and geopolitical sensitivities between the two countries. Despite these hurdles, recent developments suggest cautious optimism that long-delayed cross-border gas projects may finally move toward production.
Sources: Reuters, CSIS
Page updated
Google Sites
Report abuse