The United States has revoked two key licences that had enabled the development of offshore natural gas projects between Trinidad and Tobago and Venezuela, a move that Trinidad’s Prime Minister Stuart Young described as a major setback for the region’s energy ambitions.
The licences were essential for Trinidad, Latin America’s largest exporter of liquefied natural gas (LNG), to access and develop offshore gas fields in Venezuela and along their shared maritime border, a strategy intended to counteract Trinidad’s declining natural gas reserves and secure future supply.
The projects, operated by energy majors Shell and BP alongside Trinidad’s National Gas Company, were also seen as crucial opportunities for Venezuela to monetise its vast natural gas resources and initiate exports, providing a much-needed new revenue stream for the country.
The licences, granted as exemptions to longstanding US sanctions on Venezuela’s energy sector and its state-owned company Petróleos de Venezuela (PDVSA), allowed the companies to negotiate, plan, and develop cross-border projects.
These included Shell’s 30-year licence to operate the Dragon field, which holds approximately four trillion cubic feet of reserves and was set to begin exporting gas to Trinidad for LNG conversion in the coming year, and BP’s similar licence for the Manakin-Cocuina field.
However, the US decision now requires Shell, BP, and the National Gas Company to wind down all activities related to these projects by May 27.
The move follows a broader tightening of US policy towards Venezuela, with the Trump administration suspending authorisations for several companies operating in Venezuela — including Chevron, Eni, and Repsol — citing insufficient efforts by President Nicolas Maduro to restore democracy and address illegal migration to the US.
Venezuelan officials have condemned the sanctions as an act of economic warfare.
Prime Minister Young stated that the revocation halts any payments to Venezuela related to the projects and has requested a meeting with the US government to discuss the suspensions.
He also expressed concern about the recent imposition of tariffs on Chinese shipping, which could further impact Trinidad and other Caribbean nations.
Shell declined to comment on the development, while BP and Venezuelan authorities did not immediately respond to requests for comment.
The revocation of these licences not only disrupts Trinidad’s efforts to secure its energy future but also undermines Venezuela’s prospects of leveraging its gas reserves for economic recovery.
With the May 27 deadline looming, the fate of the cross-border gas projects remains uncertain as diplomatic efforts continue.
