Shell targets 2027 drilling at Venezuela's key offshore gas field, sources say

The Dragon project, located in Venezuelan waters near the maritime border with Trinidad and Tobago, is set to be the OPEC country's second offshore gas development, and is viewed as one of the most important initiatives to address Trinidad's worsening gas shortage, which has reduced output at the country's liquefied natural gas and petrochemical facilities.

Shell plans to transport gas from Dragon to Trinidad, with about 70% of production earmarked for the Caribbean nation's flagship Atlantic LNG export facility and the remaining 30% intended for the country's petrochemical sector, the Trinidad government has previously said.

Trinidad's domestic gas production has declined, forcing LNG and petrochemical producers to operate below capacity and contributing to the shutdown or idling of several ammonia and methanol plants as well as Atlantic LNG's 4 mtpa Train 1.

Shell has previously said that Dragon could help replenish supplies to Atlantic LNG, of which the British company and BP each own 45%, while Trinidad's National Gas Company holds the remaining stake.