LONDON, April 2, 2026, 12:15 BST
Shell Plc is in advanced talks with Venezuela to widen its offshore gas push, aiming for access to about 20 trillion cubic feet of reserves near Trinidad and Tobago, according to two people familiar with the discussions. The company wants to move the gas to Trinidad and turn it into liquefied natural gas, or LNG — gas cooled into liquid form for transport by ship. 1
The timing matters. Shell is the world’s biggest LNG trader, and the Middle East war has knocked nearly 20% of global LNG supply offline, forcing buyers to chase replacement cargoes while U.S. exports hit a record 11.7 million metric tons in March. 2
Europe remained the biggest buyer of U.S. LNG last month, but shipments to Asia more than doubled as prices rose, a sign of how tight the market has become. For Shell, nearby Venezuelan gas could help feed Atlantic LNG in Trinidad, where lost supply has kept output below capacity. 3
That matters because Atlantic LNG, owned 45% by Shell and 45% by BP, can produce 12 million metric tons a year but shipped only 9 million in 2025 because Trinidad did not have enough gas, LSEG data showed. Shell said in February that new U.S. general licenses for oil and gas exploration in Venezuela would let it move ahead with Dragon, its long-delayed offshore gas project. 4
Shell confirmed its interest in some of the extra acreage. “The proximity to Manatee makes Loran an attractive investment opportunity for Shell,” the company said in an email to Reuters, referring to the field beside its Manatee development in Trinidad. One person familiar with the talks said the plan was to drill subsea wells on the Venezuelan side and tie them back to Shell’s Manatee platform. 1
The package under discussion covers Dragon, three neighbouring areas in Venezuela’s Mariscal Sucre project and the 7.3-tcf Loran area, for roughly 20 tcf in all, the people said. Reuters reported in March that Shell had already signed preliminary agreements in Caracas to move Dragon forward and potentially develop the onshore Carito and Pirital fields, while Chevron is expected to give up interests in blocks that include Loran. 1
Dragon could reach a final investment decision — the formal go-ahead to spend on a project — by the end of this year, the sources said. Chief Executive Wael Sawan said last week Shell could greenlight one or two Venezuela projects in 2026 if fiscal and legal conditions improve, adding that the initial focus was gas “that can be monetized through LNG.” 1
The chase for fresh gas also fits a longer problem at Shell. Reuters reported in February that the company’s reserve life fell below eight years at the end of 2025, and RBC analyst Biraj Borkhataria said then that, “Absent M&A in the near term, we expect these concerns over [production] longevity to linger.” 5
But the push could still snag. Russian-held interests in two Mariscal Sucre areas remain a hurdle, the people said, and Shell has been clear that workable fiscal terms and legal certainty are still needed in Venezuela. Dragon has already been slowed before by shifts in U.S. sanctions policy. 1
Shell executives have been warning that the wider gas market is getting less forgiving. Sawan said on March 24 that shortages could hit Europe by April if the Middle East conflict persisted, while Cedric Cremers, Shell’s head of integrated gas, said geopolitical shocks “send the wrong signals” about the affordability and security of gas supply. 6
Shell shares rose 3.3% in London trade on Thursday, while BP gained 4.5%, after oil prices jumped and the FTSE energy index climbed 3.6% on fears of prolonged supply disruption following U.S. President Donald Trump’s threat of more aggressive strikes on Iran. 7
