Shell Seeks Long-Term License for Dragon Natural Gas Project

The Venezuelan government had recently awarded a 30-year licence, allowing Shell and NGC to produce and export gas to Trinidad.

SEATTLE (Oil Monster): Shell is reportedly seeking to obtain a long-term licence from the U.S. authorities before taking a final investment decision (FID) on the Dragon natural gas project in Venezuela.

The U.S. had granted Trinidad a two-year license to negotiate and develop the Dragon project in early 2023. It had named Shell as the operator, with state-owned PDVSA from Venezuela and National Gas Company (NGC) from Trinidad as partners.  The license was amended in October last year until October 2025.

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The Venezuelan government had recently awarded a 30-year licence, allowing Shell and NGC to produce and export gas to Trinidad. Meantime, Trinidad awaits FID for the project, before proceeding with final sanctioning and construction. Shell is seeking a 15-year license as it believes that the current U.S. license will expire before the FID and the commencement of gas production.

Meantime, Trinidad’s energy minister, Stuart Young observed that a two-year licence has a window and this is a transaction that will take more than two years. The matter was discussed with US Assistant Secretary of State for Energy Resources Geoffrey Pyatt last month during a meeting.

The Dragon project, near the maritime border with Trinidad and Tobago, is estimated to contain up to 4.2 trillion cubic feet of gas.