HOUSTON, April 1, 2026, 06:12 CDT
Shell Plc is in advanced talks with Venezuela’s government to develop four offshore gas areas near Trinidad and Tobago, in a move that could give the company access to about 20 trillion cubic feet of gas and bolster supply to Atlantic LNG. Two people familiar with the discussions said Shell wants acreage beyond the flagship Dragon field, and the company confirmed its interest in the additional areas in an email. 1
The timing matters. The global market for liquefied natural gas, or LNG — gas chilled into liquid for shipping — has tightened sharply after the Iran war hit Qatari supply and shipping through the Strait of Hormuz, while Atlantic LNG in Trinidad has been short of gas and running below capacity. Asian spot LNG prices have jumped 85% since Feb. 28, and Cheniere said last week it was already operating at full capacity. 2
The market is paying up for available cargoes. “Spot prices are good,” Wang Yuanda, an analyst at ICIS, said on Wednesday, while Cheniere chief executive Jack Fusco said the latest shock reinforced the need for “diversity of supply.” 2
The package under discussion includes Dragon, a 4.2-trillion-cubic-foot field, three neighboring areas in the Mariscal Sucre offshore cluster, and the 7.3-trillion-cubic-foot Loran area, which extends into Trinidad. The gas would be sent to Trinidad for processing and export through Atlantic LNG, where Shell holds 45%; the plant shipped under 9 million metric tons last year, below its reduced 12 million-ton annual capacity. 1
Chief executive Wael Sawan said last week Shell could approve one or two Venezuela projects by year-end if fiscal and legal conditions improve. “Initially,” he said, the opportunity is “more geared towards gas, and in particular gas that can be monetized through LNG.” 3
Chevron is expected to relinquish stakes in blocks covering the Venezuelan side of Loran, potentially giving Shell room to expand there, the people said. BP is also tied to the outcome because it is a partner with Shell and Trinidad’s National Gas Company in Atlantic LNG, which has been constrained by gas shortages. 1
The latest talks build on agreements Shell signed with Venezuela in March covering offshore gas, onshore oil and gas openings, and technical and commercial work with service providers. Trinidad’s Energy Minister Roodal Moonilal said at the time first gas from Dragon could reach Trinidad in the third quarter of 2027 if the current framework holds. 4
But the wider push is far from settled. Russian-held interests in two Mariscal Sucre fields remain a hurdle, Shell still needs clearer fiscal terms and legal certainty, and U.S. sanctions approvals have already slowed Dragon in the past. Years of underinvestment in Venezuela’s energy system could still stretch the timeline. 1
Shell said the proximity of Loran to its Manatee development makes the field attractive. The next marker is a formal go-ahead on Dragon, which sources and Sawan said could come by year-end if conditions improve. 1
