Shell is racing against the clock to complete a marine survey at Venezuela’s offshore Dragon gas field, all while navigating the choppy waters of U.S. sanctions. The multinational energy giant has dispatched the Colombia-flagged survey vessel Dona Jose II to gather crucial data before a May 27th deadline to wind down all licenses related to energy projects in the country. This deadline, set by the U.S. government, is the latest twist in a long-running saga that has seen Washington tighten the screws on Venezuelan energy projects since 2019.
The Dragon gas field, located offshore Venezuela, is a significant piece of the puzzle for both Venezuela and Trinidad. For Venezuela, it represents a chance to monetize its vast offshore gas reserves, which have largely remained untapped due to political and economic turmoil. For Trinidad, the world’s largest exporter of ammonia and methanol, and Latin America’s largest exporter of liquefied natural gas (LNG), the Dragon field is a potential lifeline to secure gas supply for its industries and counter declining reserves.
The survey, conducted in partnership with Trinidad’s National Gas Company, aims to determine drilling locations and pipeline design. This data could be crucial if Washington ever allows the project’s development. The Dragon gas project had been seen as a rare opportunity for Trinidad to secure foreign gas supply, while also providing Venezuela with a much-needed economic boost. In 2023, Venezuela granted Shell a 30-year license to operate the Dragon field, with gas exports expected to begin as early as next year, to be turned into LNG in Trinidad.
However, the U.S. government has other plans. The Trump administration’s cancellation of a 2023 license, which allowed Shell and NGC to plan and develop the Dragon field, has thrown a wrench into the works. The U.S. has accused Venezuelan President Nicolas Maduro of not doing enough to restore democracy and secure the return of migrants illegally in the U.S. Venezuelan officials, on the other hand, have accused the U.S. of waging an “economic war” against their country.
So, what does this all mean for the future of the maritime industry and energy sector? For one, it highlights the complex web of politics, economics, and energy security that often underpins offshore energy projects. It also underscores the challenges that energy companies face when operating in politically sensitive regions. Furthermore, it raises questions about the role of the U.S. in shaping the energy landscape of Latin America and the Caribbean.
As Shell and NGC race to complete the survey, the maritime industry will be watching closely. If the Dragon gas field does eventually come online, it could set a precedent for future offshore energy projects in the region. It could also provide a much-needed boost to Trinidad’s energy sector and help Venezuela begin to tap into its vast offshore gas reserves. However, with the U.S. deadline looming and political tensions running high, the future of the Dragon gas field remains as uncertain as the waters it lies beneath.
The maritime industry, known for its resilience and adaptability, will no doubt find a way to navigate these challenges. But as the clock ticks down to the May 27th deadline, one thing is clear: the Dragon gas field is a high-stakes game of political poker, with the future of energy supply in the region hanging in the balance. As the industry watches and waits, the question on everyone’s lips is: will Shell and NGC be able to beat the deadline, or will the Dragon gas field remain just another untapped resource, lost to the political currents? Only time will tell.