Trinidad And Tobago Expands Energy Sector Amid Regional Shifts

Trinidad and Tobago is advancing its fossil fuel sector as part of a broader strategy to maintain its position as a key player in the Caribbean’s energy landscape. Despite challenges posed by new U.S. sanctions on Venezuela, the government is focusing on expanding oil and gas production, capitalizing on both domestic reserves and regional growth, particularly in neighboring Guyana.

The island nation, long known as the largest oil and gas producer in the Caribbean, ranks 17th globally for natural gas output. For over a century, fossil fuel extraction has fueled its economy, with natural gas continuing to serve as the backbone of its electricity generation sector. The Phoenix Park Gas Processors Limited (PPGPL), one of the largest natural gas processing plants in the Western Hemisphere, handles nearly 2 billion cubic feet per day (bcf/d), producing 70,000 barrels per day (bpd).

The country’s upstream oil and gas market is forecast to grow at a compound annual growth rate (CAGR) of 4.4% between 2020 and 2030, driven by significant offshore projects. Of Trinidad and Tobago’s 31 natural gas fields, 25 are offshore, contributing to its prominent role in the regional energy market. Major global players such as BP, Repsol, and Shell operate within its borders.

In contrast, Guyana has rapidly emerged as a competitive energy force, attracting substantial international investment following significant oil and gas discoveries. By 2030, Guyana’s natural gas output is expected to reach 1.12 bcf/d, roughly 45% of Trinidad and Tobago’s current production, which has intensified competition between the two nations.

In response, Trinidad and Tobago has outlined new initiatives to bolster its energy sector. In January, the government announced plans for a bidding round in 2025, offering 26 offshore blocks for auction to attract more international investment. The blocks, located off the eastern and northern coasts, are set to be auctioned with a submission deadline of July 2, 2025, and winning bids to be announced by October.

Furthermore, Trinidad and Tobago’s state-owned National Gas Company (NGC) is seeking an extension to a U.S. license granted in 2023, which would allow it to continue developing the Dragon gas field offshore Venezuela in partnership with Shell. However, U.S. sanctions on Venezuela and its state oil firm PDVSA, imposed under the Trump administration, threaten to disrupt the project.

In April, the U.S. Office of Foreign Assets Control (OFAC) announced plans to revoke licenses held by Shell and BP for operations in the Dragon and Cocuina gas fields, located in the maritime boundary between Venezuela and Trinidad and Tobago. This move follows tighter sanctions on Venezuela and reflects the broader geopolitical shifts in the region. The Dragon field is estimated to contain up to 4.2 trillion cubic feet of gas, which was intended to be processed at Shell’s Hibiscus platform off Trinidad.

Trinidad and Tobago’s Energy Chamber emphasized the significance of maintaining cooperation with both the U.S. and Venezuela to preserve economic opportunities from the importation of Venezuelan gas. The Chamber also pointed to ongoing developments in other fields, including Mento, Coconut, Ginger, and Manatee, as promising sources of future growth.

In recent developments, BP has successfully launched production at its Cypre oil field and greenlit the Ginger natural gas project, both offshore Trinidad and Tobago. These projects, part of BP’s broader investment strategy, mark a milestone in the country’s energy sector. Additionally, the Anglo-French oil company Perenco has acquired Woodside Energy’s Greater Angostura oil and gas assets, which produce over 50,000 barrels per day of oil equivalent. Perenco’s CEO, Armel Simondin, hailed the acquisition as a significant expansion of its portfolio in Trinidad and Tobago.

With a focus on expanding offshore resources and navigating regional challenges, Trinidad and Tobago’s energy sector remains a critical pillar of its economy and a key player in the Caribbean’s fossil fuel industry.