Shell is moving to commence natural gas production from the massive Loran-Manatee offshore field, with output now projected to begin as early as next year. National Gas Company (NGC) Chairman Gerald Ramdeen confirmed to Reuters that the project, which straddles the maritime border between Trinidad and Tobago and Venezuela, has seen significant infrastructure upgrades to accommodate higher volumes.
A recent report from Reuters indicates that Shell has expanded the capacity of the pipeline designated to transport gas to Trinidad’s shores. The project will now utilize a 32-inch pipeline capable of moving 1 billion cubic feet of gas per day, a substantial increase from the originally planned 24-inch line rated at 700 million cubic feet per day. This infrastructure will deliver gas directly to the Beachfield facility, providing a much-needed lifeline to Trinidad’s liquefied natural gas (LNG) and petrochemical sectors, which have struggled with supply shortages in recent years.
The development marks a strategic shift as Shell navigates the complex political landscape of the region. While the Manatee portion of the field lies within Trinidadian waters and is slated for production next year, the larger Loran side, holding an estimated 7.3 trillion cubic feet of reserves, resides in Venezuelan territory. Shell is currently in advanced discussions to participate in the Loran side following the exit of U.S. producer Chevron, which is relinquishing its interest in the field to focus on oil assets in Venezuela’s Orinoco Belt.
Despite the technical momentum, political hurdles remain. Prime Minister Kamla Persad-Bissessar announced on Wednesday that a Trinidadian delegation will travel to Caracas to continue negotiations on the separate 4.5-TCF Dragon gas project. The Dragon field, located entirely within Venezuelan waters, is operated under a 30-year license, with Shell holding an 80% stake and NGC holding the remaining 20%.
The influx of new gas supplies, coupled with mounting global energy security concerns fueled by the U.S.-Israel-Iran conflict, has prompted NGC to advocate for the revival of the Atlantic LNG complex's first liquefaction train. Train 1 was mothballed years ago due to a lack of feedstock, but Ramdeen noted that NGC is now pushing partners Shell and BP, who each own 45% of the project, to restart the facility to capitalize on the expected surge in production. While a final investment decision on the full unification of the Loran-Manatee fields is still pending, the infrastructure upgrades suggest that the region is preparing for a significant boost in energy exports.
The Energy Chamber of Trinidad and Tobago welcomes the news of first gas from the Loran-Manatee field in 2027 and the intention to deliver higher volumes of natural gas. The Energy Chamber also welcomes the news of the diplomatic mission to Venezuela to improve relations between the two countries, with the view that both parties can benefit from the further development of the cross-border gas fields that straddle both nations. The development of offshore gas projects, of course, brings additional opportunities for the delivery of natural gas into the NGC pipeline infrastructure, which will aid in the production and export of LNG, methanol, and ammonia; it also opens opportunities for local contractors and energy services companies to participate in the supply chain.