(Reuters) – Venezuela’s oil ministry will ask the presidency to suspend a wide cooperation agreement with Trinidad and Tobago for energy development, including joint gas projects in negotiation, the South American country’s oil minister said on Monday.
Trinidad’s previous government had been planning numerous joint gas projects with Venezuela, including the 4.2 trillion cubic feet Dragon field to be developed by Shell (SHEL.L), opens new tab and the National Gas Company of Trinidad (NGCTT.UL), for which it received a U.S. license earlier this month.
However, the new administration of Prime Minister Kamla Persad-Bissessar has not been seen as an ally by Venezuelan President Nicolas Maduro.
Since taking office in April, her new government has had a close relationship with the administration of U.S. President Donald Trump, while tensions between Washington and Caracas have escalated.
The current relationship between Trinidad and Venezuela, which could complement each other’s energy needs, is “hostile,” Oil Minister Delcy Rodriguez said in a broadcast message.
“In consequence, all gas agreements between Venezuela and Trinidad would be suspended,” she said, adding that President Maduro is expected to receive the suspension request soon.
Venezuelan officials have criticized the authorization Trinidad received from the U.S. to negotiate the flagship Dragon project with U.S.-sanctioned Venezuela, and said Trinidad would have to pay for any gas supplies.
The Dragon development, which lies in Venezuelan waters, has faced long-standing delays amid frequent U.S. policy changes since Washington imposed energy sanctions on Venezuela in 2019.
Trinidad’s Prime Minister Kamla Persad-Bissessar said her country did not need Venezuela’s gas.
“We have our plans to grow our economy both within the energy and non-energy sectors,” she told the Trinidad and Tobago Newsday newspaper on Monday.
Shell, NGC and BP (BP.L), opens new tab, which are involved in various projects that include Venezuela, did not immediately reply to requests for comment.
Shell is separately developing the Manatee gas project, which crosses the maritime border into Venezuela but had received permission from the Maduro government to be developed on the Trinidad side independently. It was not immediately clear if that project could also be at risk.
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