Shell eyes 2027 kickoff for drilling at Venezuela offshore gas field

The Dragon project, located in Venezuelan waters near the maritime border with Trinidad and Tobago, is set to be the OPEC country's second offshore gas development, and is viewed as one of the most important initiatives to address Trinidad's worsening gas shortage, which has reduced output at the country's liquefied natural gas and petrochemical facilities.

Shell plans to transport gas from Dragon to Trinidad, with about 70 per cent of production earmarked for the Caribbean nation's flagship Atlantic LNG export facility and the remaining 30 per cent intended for the country's petrochemical sector, the Trinidad Government has previously said.

Trinidad's domestic gas production has declined, forcing LNG and petrochemical producers to operate below capacity and contributing to the shutdown or idling of several ammonia and methanol plants as well as Atlantic LNG's four mtpa Train 1.