On October 27, the Venezuelan government announced the immediate suspension of its energy cooperation agreement with Trinidad and Tobago, marking the stalling of a decade-long partnership between the two nations in the natural gas sector. Vice President and Petroleum Minister Delcy Rodríguez stated in Caracas that a formal proposal had been submitted to President Nicolás Maduro to temporarily suspend all bilateral energy projects, including the shared “Dragon” offshore gas field initiative with Trinidad.
According to reports, this cooperation can be traced back as early as 2015. The two sides originally planned to jointly develop natural gas resources located on the maritime border between Venezuela and Trinidad. Trinidad was to construct receiving and liquefaction facilities to export the gas to international markets. The decision to suspend the cooperation means that relevant transnational corporate and financing projects will be forced to be put on hold, including the participation of the British company Shell in some gas field projects.
Geopolitical Tensions Trigger the Suspension
According to news reports, the incident was triggered by the recent arrival of the U.S. warship USS Gravely in Trinidad for joint exercises. Venezuela deemed this move a “direct provocation to national security” and accused the Trinidadian government of “maintaining a hostile stance toward the United States.” Trinidad’s newly appointed Prime Minister Kamla Persad-Bissessar countered that Trinidad is a sovereign nation with the right to engage in defense cooperation with any country. She emphasized that its energy policy is “independent and self-reliant, not dependent on Venezuelan gas supplies.”
Analysts point out that geopolitical security considerations and the U.S. factor are key drivers behind this decision. Since the U.S. imposed sanctions on Venezuela’s oil and gas sector in 2019, Trinidad and Tobago has sought U.S. authorization to continue cooperation with Venezuela without violating the sanctions. Washington approved Trinidad and Tobago’s participation in the “Dragon” gas field development project this year, but Caracas viewed this authorization as external interference, further deepening mutual distrust between the two nations.
Regional Energy Impact and Future Outlook
This suspension of cooperation may trigger a chain reaction in the Caribbean region. Trinidad and Tobago, one of the region’s major liquefied natural gas exporters, relies on imports of feed gas from Venezuela for part of its production plans. In the short term, the project’s halt will increase uncertainty in its energy supply and impact natural gas flows and price expectations in international markets. For Venezuela, while this move carries more symbolic than economic weight, it nonetheless diminishes its influence in regional energy cooperation. Amid ongoing sanctions and investment flight, Venezuela’s hopes of reviving natural gas exports through regional collaboration face renewed setbacks. The Federation of Caribbean Chambers of Commerce has voiced concern, stating the suspension will “undermine regional energy integration and market stability.”
Overall, this incident transcends a bilateral energy dispute, revealing the intricate interplay between geopolitics, sanctions policies, and regional energy security. Whether both parties can resume dialogue through diplomatic channels in the coming months will determine the next trajectory of the Caribbean’s energy landscape.
