Page 8 - GLNG Week 38 2022
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GLNG COMMENTARY GLNG
Turning to Venezuela?
This shift is good news for Port of Spain, given will continue to be difficult to secure large-scale
the current price differentials between US and investment in Venezuelan gas projects.
European gas markets, and it does put the coun-
try in a better position to benefit from current Running out of time?
conditions on world gas markets. However, it And that is unfortunate for the plan favoured by
does not address the medium- and long-term Rowley et al., as a great deal of investment will
problems of how to compensate for declining be needed to facilitate gas shipments from Ven-
gas output and maturing fields. ezuela to Trinidad and Tobago.
Nevertheless, the Energy Chamber of Trini- The two countries may not be far apart geo-
dad & Tobago pointed out in a blog post earlier graphically, and their maritime zones may
this month that at least one possible solution adjoin. They may even share a major asset –
had already been put forward. Rowley and his namely, a sizeable gas field known alternately as
Energy Minister Stuart Young, along with Guy- Loran and Manatee. But Venezuela’s oil and gas
ana’s President Irfaan Ali and officials from other sector is not in the best condition, and existing
countries in the region, have said they favour production and transportation infrastructure
proposals for relaxing US sanctions on Vene- will not be able to send gas from onshore fields to
zuela with the aim of allowing the South Amer- the neighbouring island state without extensive
ican state to send its gas to Trinidad via some rehabilitation and repairs.
combination of subsea pipelines and tie-backs Meanwhile, Venezuela has little in the way of
connecting their adjacent offshore zones. offshore gas infrastructure, so investors would
Proponents of this plan argue that the scheme have to set it all up. These processes would be
would allow Venezuela to reduce associated expensive, and they would take time.
gas flaring during the development of onshore The question is whether they will take more
oilfields, while also enabling the development time than Trinidad and Tobago has. Rowley
of offshore gas fields and increasing feedstock recently raised the alarm about this issue, saying
deliveries to Atlantic LNG. It’s worth noting, that the country’s gas output was likely to drop in
though, that this plan would also face significant the second half of the decade unless the govern-
hurdles. ment found a way to gain greater influence over
One of these hurdles is, of course, the US development strategy.
sanctions regime, which remains largely in place “[If] we do not make decisions ... the diagram
even though President Donald Trump, whose shows that by 2026, 2027, 2028 the levels of gas
administration did so much to intensify trade that will be available in Trinidad and Tobago –
restrictions, has been out of office for more than if no new improvements are [made] – will have
a year and half. Trump’s successor Joe Biden has far-reaching consequences for government reve-
shown signs of being more amenable to lighten- nues and, I dare say, for the quality of life of all the
ing sanctions, but this will take time – and until people of Trinidad and Tobago,” he said, accord-
there is significant movement on this front, it ing to a report from OilNOW.
P8 www. NEWSBASE .com Week 38 23•September•2022
