Shell Eyes Venezuela Gas Expansion to Boost LNG Supply

Shell is in advanced discussions with Venezuela to develop new offshore gas areas, signaling a strategic push to expand its liquefied natural gas portfolio.

The energy major is targeting four key areas near Trinidad and Tobago, located within two of Venezuela’s largest offshore gas reserves.

A final investment decision on the Dragon gas field, holding 4.2 trillion cubic feet, could be reached by the end of the year.

Preliminary agreements signed in Caracas also include potential development of the Carito and Pirital onshore oil and gas fields.

Shell plans to process Venezuelan gas in Trinidad, supporting its Atlantic LNG facility, which has faced supply constraints in recent years.

The company is also exploring opportunities in the Loran field, leveraging proximity to its Manatee operations for efficient development.

With a 45% stake in Atlantic LNG, Shell aims to restore output capacity, which has declined due to insufficient gas feedstock.

Despite progress, regulatory complexities and existing third-party interests remain challenges, though Shell remains confident in advancing these high-potential projects.

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