US Revokes Licenses for Trinidad-Venezuela Gas Projects

The United States has revoked licenses for offshore natural gas projects between Trinidad and Tobago and Venezuela. These projects were vital for Venezuela's gas exports and Trinidad's declining reserves. The U.S. sanctions on Venezuela require companies to cease operations by May 27.

The United States has taken a significant step by revoking licenses it previously granted for offshore natural gas projects situated between Trinidad and Tobago and Venezuela, according to Prime Minister Stuart Young. As the largest LNG exporter in Latin America, Trinidad had been relying on developing these offshore fields to confront dwindling reserves and ensure supply continuity.

These projects were considered crucial for Venezuela, providing the only feasible near-term opportunities to capitalize on its extensive gas reserves, thereby creating a much-needed revenue stream. However, U.S. sanctions necessitate a wind-down of operations by companies like Shell and BP, which have until May 27 to halt activities, Young announced at a press event.

While Venezuela had authorized Shell and BP to operate key fields, the broader geopolitical landscape—marked by U.S. sanctions over concerns about Venezuela's political system—casts a shadow over these energy aspirations. Trinidad seeks dialogue with the U.S. regarding these sanctions and their economic impact, alongside recent tariffs affecting Caribbean shipping.

(With inputs from agencies.)