Shell Secures Nod for Venezuelan Gas Exports to Trinidad Amid US Sanctions Relaxation

Shell is poised to resume operations at the Dragon gas field offshore Venezuela, aiming to boost natural gas supplies to Trinidad and Tobago. The move reflects growing confidence that the Trump administration will grant a new U.S. sanctions exemption license. The Dragon field holds over 4 trillion cubic feet of proven natural gas reserves, critical for Trinidad's energy sector, which has been experiencing feedstock shortages. Shell is optimistic about securing a long-term license from the U.S. Treasury's Office of Foreign Assets Control.

Shell plc (SHEL) is positioning itself to resume operations at the Dragon gas field offshore Venezuela, aiming to bolster natural gas supplies to Trinidad and Tobago. This strategic move reflects growing confidence that the Trump administration will soon grant a new U.S. sanctions exemption license, according to Bloomberg, as cited in a World Oil article Shell Nears U.S. Nod for Venezuelan Gas Exports to Trinidad^[1].

The Dragon gas field, located in shallow Caribbean waters near the maritime border of Venezuela and Trinidad, holds over 4 trillion cubic feet of proven natural gas reserves. Trinidad’s Atlantic liquefied natural gas (“LNG”) complex and petrochemical plants have been experiencing chronic feedstock shortages, making the Dragon field a vital resource for the country’s energy sector Shell Nears U.S. Nod for Venezuelan Gas Exports to Trinidad^[1].

Shell’s strategy aligns with a targeted approach to re-engage with Venezuela’s offshore energy assets despite ongoing U.S. sanctions. The company is optimistic about securing a long-term license from the U.S. Treasury’s Office of Foreign Assets Control, which would enable it to develop the Dragon field without violating current sanctions Shell Nears U.S. Nod for Venezuelan Gas Exports to Trinidad^[1].

Unlike oil transactions that risk direct financial support to the Maduro regime, natural gas deals are seen as less politically sensitive, especially when structured to avoid hard currency payments to Venezuela. The United States appears more willing to green-light such operations if companies circumvent direct financial engagement with the government of Venezuela Shell Nears U.S. Nod for Venezuelan Gas Exports to Trinidad^[1].

In recent months, high-level diplomacy has taken place, with Trinidadian officials working closely with Shell and U.S. counterparts to revive the Dragon project. Prime Minister Kamla Persad-Bissessar has maintained a strong dialogue with U.S. Secretary of State Marco Rubio, who reaffirmed U.S. support for the initiative, provided it does not significantly benefit Venezuela’s leadership Shell Nears U.S. Nod for Venezuelan Gas Exports to Trinidad^[1].

Shell’s return to the Dragon field could signal a new chapter in U.S.-Venezuela-Trinidad energy relations, potentially unlocking billions of dollars in investment, stabilizing regional energy markets, and offering a measured blueprint for future engagement in Venezuela’s resource-rich waters Shell Nears U.S. Nod for Venezuelan Gas Exports to Trinidad^[1].