02/ 23 Closing Prices / revised 02/23/2024 21:59  GMT 02/22   OPEC Basket  82.90 + 0.91  | 02/23    Mexico Basket (MME)   $72. 22 -2.05 | 01/13    Venezuela Basket (Merey)  $66.50  +1.30   | 02/23     NYMEX WTI Texas Intermediate April  CLJ24   $76.49 -2.12 | 02/23    ICE Brent April BRNJ24     $81.62 -2.05 | 02/23     NYMEX Gasoline March  RBH24   $2.28  -2.5% |  02/23    NYMEX  Heating Oil March  HOH24   $2.69   -2.3%   | 02/23    Natural Gas March NGH24    $1.60  -7.5% | 02/23    Active U.S. Rig Count (Oil & Gas)    626   +5  | 02/23    USD/MXN Mexican Peso  17.1166  (data live  | 02/23     EUR/USD    1.0821  (data live)  | 02/23    US/Bs. (Bolivar)   $36.06980000  ( data BCV)  

Differing LNG outlook stalls Shell talks on Dragon gas project with Venezuela – Reuters

The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/
The logo of British multinational oil and gas company Shell is displayed during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. (Chris Helgren/Reuters)

Curtis Williams, Reuters

HOUSTON
EnergiesNet.com 12 15 2023

A disagreement between Shell PLC (SHEL.L) and Venezuela’s state company PDVSA (PDVSA.UL) over future liquefied natural gas (LNG) prices has gridlocked talks on a license for Shell and Trinidad and Tobago’s National Gas Company (NGCTT.UL) to operate a Venezuelan gas field, two people close to the negotiations said.

Trinidad is seeking access to up to 4.2 trillion cubic feet (TCF) of gas in Venezuela’s Dragon offshore field to ramp up exports of LNG and petrochemicals, which have suffered in recent years because of gas curtailment. Dragon sits on Venezuelan waters, near the maritime border between the two countries.

“The Venezuelan government has made it clear to Trinidad and Tobago that the license will not be issued to Shell and NGC unless Shell and PDVSA come to an agreement on future LNG prices,” the people said.

Shell projects soft LNG prices to 2050, but Venezuela has argued that many analysts suggest that LNG prices at Europe’s TTF and Asia’s JKM are likely to remain strong in the long term, the people said.

Shell, NGC, PDVSA and Trinidad’s energy ministry did not immediately respond to requests for comment.

Trinidad’s Prime Minister Keith Rowley last week told journalists in a broadcast conference about issues surrounding a deal for Dragon, which his government has no control over. The Caribbean nation was not “putting all its eggs in one basket,” he said, without elaborating on details.

The parties had originally planned to have the license approved by the end of December, after receiving U.S. authorization in January and agreeing to the main terms.

At issue is a 25-year authorization to send an initial volume of 300 million cubic feet per day (mmcfd) of Venezuelan gas to Trinidad for LNG production starting in late 2026, and an additional 50 mmcfd to petrochemical plants. Shell is set to operate the project with a 70% stake and NGC would hold the remaining 30%.

Trinidad’s flagship Atlantic LNG project includes four processing trains that can turn up to 15 million metric tons per annum (MTPA) of gas into a superchilled liquid product ready for export. But last year the facility only produced 8.2 MTPA due to one idled train, official figures showed.

Atlantic LNG is a significant contributor to Shell’s LNG portfolio. Last year, Shell’s share of the facility’s output was 4.4 million metric tons or 15% of its global production.

Venezuela, which holds Latin America’s biggest gas reserves, and neighboring Trinidad, the region’s largest LNG exporter, would complement each other’s needs to produce and export gas.

Reporting by Curtis Williams in Houston; Additional reporting by Marianna Parraga; Editing by Richard Chang

reuters.com 12 14 2023

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

 
 
Scroll to Top