Andrea Perez-Sobers
Senior Reporter
Trinidad and Tobago could gain a fresh lifeline for its energy sector as new Venezuelan gas licences open the possibility of accessing supplies from the Loran field and other regional developments.
Energy sector expert Dr Thackwray Driver sees the development as positive for both countries, with bp, ADNOC and UCC Oil and Gas moving into Loran Phase II.
For T&T, the potential prize is additional pipeline gas across the maritime border to help keep Atlantic LNG operating into the future. Driver expects most Loran gas could go to Atlantic, freeing other sources, including Manakin/Cocuina and Dragon, where NGC has an upstream investment, for Point Lisas.
The Loran field forms part of the Loran-Manatee cross-border gas field, estimated to contain ten trillion cubic feet of natural gas. On the T&T side, Shell is developing Manatee, with first gas expected in the second quarter of 2027.
Prime Minister Kamla Persad-Bissessar described the agreements as a boost to T&T’s energy security and its ambitions as a regional energy hub.
Driver also sees longer-term opportunities in the Venezuelan offshore acreage, including for Trinidad-based service companies. He urged the Government to engage the local service sector so that firms can position themselves for work related to the development and operation of the fields.
Economist Dr Jamelia Harris also views the cross-border gas developments as positive, saying they could revive the energy sector and provide a steadier supply of gas to industries that depend on it. She expects spillover benefits for the services sector, alongside higher government revenues and foreign exchange earnings.
Harris cautioned that T&T must secure the best possible terms and ensure the benefits of growth are widely shared. She also wants policymakers to use the expected energy gains to strengthen non-energy sectors and break the boom-bust cycle that has characterised the economy since independence.
Economist Dr Ronald Ramkissoon welcomed the potential benefits, particularly the prospect of additional gas for petrochemical plants, more employment, government revenues and foreign exchange earnings. But he warned that the country must examine the political economy surrounding the arrangements and distinguish between gross gains and net gains.
He also warned against allowing another energy boom to divert attention from agriculture, food security, tourism and other non-energy activities.
Meanwhile, former Energy Minister Stuart Young has taken a more critical stance, arguing that the current administration was not present at the negotiations with Venezuela and is therefore at a disadvantage.
Young said four companies are now involved, with Shell holding Loran Phase I, requiring negotiations over development and commercial terms with Venezuela.
He also pointed to the shutdown of Methanex and Nutrien plants at Point Lisas and warnings of further closures, arguing that T&T needs to secure access to gas while decisions over Venezuela’s resources are being made.
