Venezuela and Trinidad signed energy development agreement

offshore vesselVenezuela and Trinidad and Tobago signed energy development agreements, including deliveries of natural gas to Caribbean islands. According to the agreement, the Dragon gas field in Venezuela’s Marisal Sucre region will supply the dual islands with up to 15 million cbm per day of natural gas through the subsea pipeline. The gas is expected to flow until 2020, as the construction of the pipeline will start within next year. The building of the pipeline will lead to a joint pipeline project between Petroleos de Venezuela SA (PDVSA) and Trinidad and Tobago’s National Gas Co (NGC). There is no final decision of the route, but it is going to either go to the north of Trinidad and tie into Royal Dutch Shell PLC’s Hibiscus platform in the North Coast Marine Area or through the south to NGC’s pipelines at the Point Lisas Estate.

“We are signing three agreements, working in our maritime territory with gas blocks, sharing these blocks and reaching agreements for exploitation together”, confirmed Venezuelan President, Nicolas Maduro, characterizing the gas and oil energy accords as a win-win relationship for both countries.

The Marisal Sucre Dragon field is about 25 nautical miles north of Venezuela’s Paria Peninsula. Trinidad is located just seven miles off the northeast coast of Venezuela. The pipeline from Venezuelan waters to the Hibiscus platform northwest of Trinidad must be finances by the Trinidad’s state-owned National Gas Co (NGC) and according to preliminary estimates will cost several hundred million dollars, but the Prime Minister of Trinidad and Tobago, De Keith Rowley, said that the country can afford it.

“Some of the plants on the Point Lisas industrial estate have been operating at between 20-30% below capacity and they need to operate above 90% to be profitable. Therefore we need to ensure that they have the natural gas necessary”, said the Prime Minister of Trinidad and Tobago, Dr Keith Rowley, pointing the importance of the gas deal.