Oil and gas company Shell has a deal with the government of Venezuela in the pipeline. With that deal, the large-scale extraction and export of natural gas is one step closer. ‘It is actually a win-win situation for both parties.
If the agreement is concluded, Shell, together with Trinidad and Tobago state gas company, can be granted the right to operate the Dragon field off the coast of Venezuela for the next 25 years. The deal has not yet been signed, but it is up to it.
The gas field in question was discovered thirty years ago, but never produced. If it comes to an agreement, the gas that is extracted off the coast of Venezuela goes to Trinidad and Tobago. There is a large LNG factory of which Shell owns 50 percent of the shares. That factory has capacity and so they are eager for the gas, the energy expert explains.
The Dragon field in question can produce about 3 billion cubic meters of gas per year in 25 years. The intention is that the gas extracted off the coast of Venezuela is spread all over the world.
The fact that a deal is likely to be made with Venezuela is now, to say, at least, conspicuously. The United States had imposed sanctions against the country’s regime, but they are now being weakened. American President Joe Biden likes to see oil coming from Venezuela, especially next year in the elections. Then the market will relax and that can help.