T&T Looks to Acquire Loran Gas Field from Venezuela

  • Trinidad And Tobago (T&T) is in advanced negotiations to acquire the gas-rich Loran field from Venezuela, Energy Minister Stuart Young has revealed.
  • The Loran-Manatee cross-border reservoir was discovered in 1983 and is estimated to contain ten trillion cubic feet (tcf) of natural gas. Loran, located on Venezuela's side of the border, is said to comprise 7.3 tcf of gas, while Manatee, situated on T&T's side, is estimated to hold 2.7 tcf.
  • On August 16, 2010, the governments of Trinidad and Tobago and Venezuela executed a unitisation agreement to explore and develop the Loran-Manatee field. However, by government-to-government agreement dated October 15, 2019, the unitisation agreement was terminated, separating the development of the Manatee field from the Loran field.
  • During the 25th anniversary and restructuring event of Atlantic LNG on September 27, 2024, Trinidadian Prime Minister Dr Keith Rowley mentioned ongoing negotiations with Venezuela regarding the Loran gas field. 'And, of course, Minister Young will tell you quietly if you talk to him that the conversations about Loran, which is 73% on that very same field, to use the same infrastructure that brings forward the Manatee portion, that discussion is well advanced,' Rowley said.
  • Furthermore, in July, Shell Trinidad and Tobago Ltd (Shell), a subsidiary of Shell plc, announced that it had taken a final investment decision (FID) on the Manatee project.
  • 'That work is far advanced now, and it holds out for us the prospect of bringing gas here to at least maintain the levels which we are now because if we don't add new gas to the mix coming in, we are not only talking about decline but even holding our production where we are now-we need a strong stream of gas coming in to maintain the levels at which we are now. Manatee does that for us,' Rowley said.
  • Overall, these energy projects will help meet the increasing demand for natural gas globally, while also addressing the energy needs of Trinidad and Tobago given its declining energy production. Real GDP growth in T&T is forecasted to come in at 2.1% in 2024 and 2.0% in 2025, down from Fitch Solutions’ 2023 estimate of 2.5%. The growth will be supported by a strong non-energy sector given the continued declines in the energy sector. As such, as these energy projects come on stream, T&T could grow beyond the 2.0% forecasted for 2025.

(Sources: Trinidad Express Newspaper & NCBCM Research)