THE extension of the licence issued by the US Office of Foreign Assets Control (OFAC) for Trinidad and Tobago to access natural gas from the Dragon gas field in Venezuela and the ability to pay for that gas in different ways was welcomed with a mix of optimism and calls for Government to move expeditiously to seize this opportunity.
Among those commenting were former government ministers Vasant Bharath and Kevin Ramnarine, energy analyst Gregory McGuire, UWI economist Dr Vaalmiki Arjoon, Greater San Fernando Chamber of Commerce president Kiran Singh, the American Chamber of Commerce (Amcham) and the Confederation of Regional Business Chambers (CRBC).
Energy Minister Stuart Young announced the extension of the licence to October 31, 2025, at a news conference at the Port of Spain International Waterfront Centre on Tuesday.
He said the extension for a further two years gives Government “more than enough time for us to get done what needs to get done.”
The original OFAC licence to TT was granted in January.
Young said the extension also allows Government to pay for gas from the field in “fiat currency, as well as US dollars, as well as (Venezuelan bolivares), as well as via humanitarian measures.”
Bharath praised Young, his ministry, Shell and the National Gas Company (NGC) for this development.
He said this project has been stalled for decades as a result of lack of capital, partners and US sanctions against Venezuela.
Bharath said it is not a secret that for the last decade, an insufficient feedstock of natural gas has hampered the operations of many companies at the Point Lisas Industrial Estate.
In this context, he said the extension of the OFAC licence “presents a much-needed kiss of life to operators in Point Lisas as well as TT’s ability to attract new FDI (foreign direct investment).” Bharath views the widening of the agreement to allow different ways to pay for the gas as “a welcome sign that the US is continuing its efforts to bolster supplies in the global energy market, which remains disrupted by the Russian invasion of Ukraine.”
He wanted to see the details of the financial arrangements for the project, including profit-sharing arrangements. Bharath said this is important “particularly, in light of the fact that PDVSA (Venezuela’s state energy company) has been crippled for decades with sanctions, lack of investment, loss of skilled labour, corruption and mismanagement.”
From his conversations with experts in TT and Venezuela, Ramnarine said it could take a minimum of two years to access the first gas from Dragon.
“A question mark hangs on the status of the wells that were drilled in the Dragon field almost 14 years ago and what infrastructure would be required to produce the natural gas and handle the associated liquids.”
Ramnarine said the public should be told what the total capital expenditure for the project is, who will fund it and “what money the NGC would be required to put out.”
[caption id="attachment_1040814" align="alignnone" width="602"] Former energy minister Ke
