Shell Strengthens Caribbean LNG Position with Venezuelan Gas Ambitions

Shell is negotiating for Venezuelan offshore gas to address feed shortages at its Trinidad LNG facility, targeting major fields like Dragon and Mariscal Sucre to increase output.

Energy major Shell is methodically expanding its footprint in the Caribbean region. The company is reportedly in negotiations to secure access to offshore natural gas fields in Venezuela. This strategic move is aimed at significantly boosting utilization rates at its liquefied natural gas (LNG) facility in Trinidad.

Addressing Trinidad's Capacity Shortfall

A central facility in Shell's regional strategy is the Atlantic LNG plant in Trinidad, in which the company holds a 45% stake. Currently, the plant is operating below its potential, producing only about 12 million tons per year against a total capacity of 15.5 million tons. This shortfall is primarily due to a lack of sufficient feed gas. Shell's plan involves tapping into Venezuelan gas reserves to fill this production gap and, looking ahead, potentially push output beyond the plant's original design capacity.

The primary targets are the Dragon field, estimated to hold 4.2 trillion cubic feet of reserves, and the Mariscal Sucre project. The latter encompasses four separate fields with a combined resource estimate of approximately 12 trillion cubic feet. Furthermore, Shell is evaluating opportunities in the cross-border Loran field, shared by Venezuela and Trinidad, which holds combined reserves estimated at around 20 trillion cubic feet. Shell already operates the Loran-Manatee field on the Trinidadian side of this resource.

Capitalizing on a Strategic Opening

A notable development adding momentum to Shell's strategy is the apparent withdrawal of Chevron from its Venezuelan interests. Should this exit materialize, Shell could substantially expand its operational control over the Loran field. Such a consolidation would represent a significant strategic advantage, enabling a more unified management of the region's gas infrastructure under a single operator.

On the corporate front, Shell continues to execute its ongoing share buyback initiative. The company repurchased nearly 859,000 of its own shares on April 2, 2026. This program, announced in February, is scheduled to run until May 1, 2026. Shell's share price is currently trading near its 52-week high, having advanced roughly 25% since the start of the year.