Shell shelves Aphrodite offshore gas project in Trinidad for now

Trinidad is the largest LNG exporter in Latin America. The decision represents a setback for the Caribbean country's efforts to reverse years of declining natural gas output, which has curtailed its LNG exports and petrochemical production.

The Aphrodite project's anticipated production would have provided a modest but welcome boost to the island's gas supplies.

Industry participants have increasingly pointed to commercial challenges, including gas pricing, as being responsible for the recent closure of several petrochemical plants on the island.

Trinidad expects to soon have access to gas from neighboring Venezuela as Shell and BP advance plans to produce there, which would complement domestic output.

Both companies have been granted licenses by the Venezuelan government related to cross-border gas developments expected to allow Venezuelan gas to be produced and transported to Trinidad for processing and export. Those projects are viewed as critical to replenishing supplies to Atlantic LNG and supporting the country's energy sector over the coming decade.