Venezuela and Trinidad's Energy Tensions Escalate, Put Joint Gas Projects at Risk

Venezuela's oil ministry is poised to request that its presidency halt a broad cooperation agreement with Trinidad and Tobago, a move that would affect negotiations around joint gas projects. This was announced by Venezuela's oil minister amid escalating tensions.

Trinidad's former administration worked closely with Venezuela on numerous gas projects, notably the 4.2 trillion cubic feet Dragon field. However, political shifts under Prime Minister Kamla Persad-Bissessar's governance have soured relations with Venezuelan President Nicolas Maduro, especially given Trinidad's alignment with U.S. policies.

Since April, with diplomatic strains rising between Washington and Caracas, Venezuela has criticized Trinidad's U.S. license to negotiate energy developments. As a result, Venezuelan oil minister Delcy Rodriguez declared potential suspension of all gas agreements. The fate of involved projects and stakeholders remains unresolved.