Trinidad and Tobago is steadily expanding its fossil fuel sector to match regional development. The country has drawn more attention as neighboring Guyana attracts major international oil companies. While some projects now face challenges due to U.S. sanctions on Venezuela, Trinidad and Tobago is moving forward with plans to boost its oil and gas production.
The country has long been the Caribbean’s largest oil and natural gas producer. It also ranks as the 17th-biggest natural gas producer in the world. With more than 100 years of fossil fuel production, Trinidad and Tobago still relies heavily on natural gas to power its electricity sector. It hosts the Phoenix Park Gas Processors Limited (PPGPL), one of the largest natural gas processing plants in the Western Hemisphere. The facility has a capacity of nearly 2 billion cubic feet per day and produces around 70,000 barrels per day.
Trinidad and Tobago’s upstream oil and gas market is expected to grow at an annual rate of 4.4 percent from 2020 to 2030. Offshore projects are set to drive most of this growth. The country currently operates 31 gas fields, with 25 located offshore and six onshore. Major players in the sector include BP, Repsol, and Shell.
Meanwhile, Guyana has made headlines with several large oil and gas discoveries. By 2030, Guyana could produce about 1.12 billion cubic feet per day of natural gas. This would be roughly 45 percent of Trinidad and Tobago’s current production of 2.51 billion cubic feet per day, making Guyana a strong competitor in the Caribbean.
In response, Trinidad and Tobago has launched new projects to attract more international investment. In January, the government announced a new bidding round, offering 26 offshore blocks for auction in 2025. These blocks are located off the eastern and northern coasts. The submission deadline is July 2, and winners are expected to be announced within three months.
In February, Trinidad and Tobago said it would seek an extension to a U.S. license that allows its National Gas Company (NGC) to work with Shell to develop a gas field offshore Venezuela. The original license, granted in early 2023, permitted joint work with Venezuela’s state oil company PDVSA on the Dragon gas field. However, renewed U.S. sanctions on Venezuela, enforced under President Trump, now threaten this collaboration.
In April, the U.S. Office of Foreign Assets Control (OFAC) said it planned to revoke two special licenses operated by Shell and BP. These licenses covered the Dragon and Cocuina gas fields, located near the maritime boundary between Venezuela and Trinidad and Tobago. The move came shortly after Chevron was ordered to end its operations in Venezuela within 30 days. The Dragon field, believed to hold about 4.2 trillion cubic feet of gas, was planned to supply Shell’s Hibiscus platform offshore Trinidad and Tobago.
The Energy Chamber of Trinidad and Tobago stressed the importance of pursuing gas imports from Venezuela. In a statement, it said, “The importation of pipeline gas from Venezuela for processing and onward sales as LNG or petrochemicals remains a significant economic opportunity for Trinidad and Tobago. It is important that the government continues to engage with both the United States and Venezuela to find a way forward.”
The Chamber also pointed to the potential of other domestic projects. It highlighted several fields under development, such as Mento, Coconut, Ginger, and Manatee. It also mentioned Calypso, Blackjack, and Onyx, where companies are working toward final investment decisions.
BP has seen success in Trinidad and Tobago this year. In March, it launched production at the offshore Cypre field, its third subsea development in the country. Later that month, BP approved the development of the Ginger natural gas project, marking its fourth subsea project in Trinidad and Tobago.
In another move, Anglo-French oil firm Perenco announced in March that it had agreed to acquire Australia-based Woodside Energy’s Greater Angostura assets. Located in Trinidad and Tobago’s northeast waters, the Greater Angostura fields produce over 50,000 barrels of oil equivalent per day. Perenco’s CEO Armel Simondin said, “We are delighted to further expand our portfolio in Trinidad and Tobago. Following the recent safe transition of the CAFI perimeter to Perenco operatorship, Perenco has proven to be a partner of choice to safeguard Greater Angostura gas production.”
As regional competition grows, Trinidad and Tobago is positioning itself to maintain its leadership in the Caribbean energy market by expanding production, attracting investment, and navigating shifting geopolitical challenges.
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