Trinidad and Tobago’s government says it will negotiate the terms of cross-border natural gas arrangements with Venezuela in the best interest of the country, as attention turns to how external gas supplies could support the local energy sector.
Finance Minister Davendranath Tancoo made the statement in Parliament in response to questions on the government’s fiscal policy for natural gas from near-border and cross-border fields, including Dragon and Manakin-Cocuina. According to Guardian Media, Tancoo said the government would negotiate the terms of these arrangements in the best interest of the people of Trinidad and Tobago.
The issue is significant because cross-border gas could play a role in easing supply constraints facing Trinidad and Tobago’s energy sector. Additional gas volumes would help support LNG production, petrochemical operations and power generation, while also protecting jobs and activity across the energy services sector.
The Dragon field has long been viewed as one of the more important near-term gas opportunities for Trinidad and Tobago. In 2025, the United States granted Trinidad and Tobago permission to negotiate with Venezuela on the Dragon gas field without facing sanctions, though the approval was tied to specific commercial conditions and did not represent a full project authorisation.
The Financial Times also reported that the U.S. authorisation allowed Trinidad and Tobago to resume negotiations with Venezuela over Dragon, a field located offshore near the maritime border. The report noted that the field is seen as important to Trinidad and Tobago’s energy needs, with potential supply to Atlantic LNG.
Tancoo’s comments point to a key policy question: how Trinidad and Tobago should structure the fiscal and commercial terms for gas entering the country from external fields. Guardian Media reported that the government is considering how to ensure the country receives fair value from cross-border gas, including possible fees or charges linked to volumes, transit or other mechanisms.
This matters because Trinidad and Tobago would not only be a consumer of the gas. The country would also provide processing infrastructure, technical capability and access to downstream plants that convert natural gas into higher-value products. A clear fiscal framework would help define how value is shared among producers, investors, the state and the domestic energy sector.
The opportunity is large, but it also comes with geopolitical and regulatory challenges. Previous Guardian analysis noted that cross-border gas talks have often been affected less by geology and more by politics, regulatory stability and international alignment.
Still, the renewed focus on cross-border gas is an important development for Trinidad and Tobago. If the country secures workable commercial terms, projects such as Dragon and Manakin-Cocuina could help improve gas availability, support downstream production and extend the life of existing energy infrastructure.
For Trinidad and Tobago, the priority will be to ensure that any agreement delivers clear national value. That means securing gas volumes, protecting the country’s processing and downstream advantage, and ensuring the fiscal terms reflect the role Trinidad and Tobago plays in monetising cross-border resources.