PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago government Tuesday welcomed the decision by the United States Treasury Department to grant a license to the Caribbean Community (CARICOM) country to develop a significant gas field located in Venezuelan territorial waters.
“The United States government has today approved Trinidad and Tobago’s development of the Dragon gas field via an OFAC waiver from sanctions with specific terms to be finalized,” Prime Minister Dr. Keith Rowley told a news conference.
‘What this means is that the restrictions on the Dragon gas fields development are now relieved, and all relevant parties can progress the plans to result in natural gas from Venezuela eventually flowing for the first time from these proven reserves to Trinidad and Tobago and then on to Caribbean, European, and other markets bringing many humanitarian benefits to the Venezuelan population and greater energy security to the Caribbean region”.
Rowley described the announcement by Washington as “a happy and significant day” for Trinidad and Tobago and the more comprehensive Caribbean Forum (CARIFORM) region that includes the Dominican Republic.
“This is a significant development with far-reaching consequences, and it behooves me from this podium in Trinidad and Tobago to say thank you to several people who went out of their way to be of assistance to us to bring about an understanding of this situation where the decisions are being made.”
Rowley said that while there is “still a lot more work to be done, this is a giant step forward,” acknowledging the role played by U.S. Congresswoman Maxine Waters, “who we in CARICOM regard as our…representative from the Caribbean” and other U.S. legislators from “both sides of the aisle.
“The result is that there was a general feeling, a consensus that was built from persons both on the Republican side and the Democratic side, that it would be a good thing for all of Trinidad and Tobago’s spare capacity was put to use to supply the clean fuel, LNG (liquefied petroleum gas) fertilizers which are important…
“So we are very grateful we are in this position now where the planning can be accelerated, and we can come to a day when the reserves from our neighbor can come to our infrastructure and feed the demands as they exist within our region and outside of our region,” Rowley told reporters.
The U.S. license means Trinidad and Tobago will be allowed to resume doing business with the Venezuelan heavily sanctioned state-run oil company PDVSA, even though the Maduro regime in Caracas will not be permitted to receive any cash payments from this project.
Political observers in Washington said that all remaining U.S. sanctions would remain unchanged and still be enforced.
“This decision is the result of extensive diplomacy between Vice President Kamala Harris and Caribbean leaders, who have made it clear that granting this specific license would help ensure their energy security and decrease the region’s reliance on energy resources from other countries, including Russia,” a senior U.S. official told the Reuters news agency.
PDVSA has found reserves of 4.2 trillion cubic feet (TCF) in the Dragon field on the Venezuelan side of its maritime border with Trinidad. The project was headed for production over a decade ago but stalled over a lack of capital, partners, and sanctions. Under U.S. sanctions, companies and governments must obtain authorization from the U.S. Treasury Department to do business with PDVSA. President Joe Biden’s administration has granted only a few such licenses since taking office in January 2021.
In a statement late Tuesday, the newly appointed United States Ambassador to Trinidad and Tobago, Candace Bond, said Washington and Port of Spain enjoy solid bilateral ties supported by extensive bilateral and regional cooperation to advance shared interests.
She said U.S. Vice President Kamala Harris spoke with Prime Minister Rowley today to continue their dialogue on efforts to strengthen the energy security and climate resilience of the Caribbean and that Harris had conveyed to Rowley that the Treasury Department would take action to help meet the region’s long-term energy needs.
“The Vice President’s dedication and commitment to the region have elevated US-Caribbean relations to unprecedented levels. She has convened 15 Caribbean leaders three times separately over the past year to drive progress on shared priorities in the region,” Bond said, noting that in September last year, Harris announced the results of three high-level committees that she established to produce near-term solutions to pressing energy security, food security, and financial challenges confronting the region.
The U.S. diplomat said that at the Summit of the Americas in June last year, Vice President Harris launched the US-Caribbean Partnership to Address the Climate Crisis 2030 (PACC 2030) to support the region’s long-term energy security and climate resilience priorities.
She said Harris and Rowley discussed PACC 2030 progress, including recent trips by the U.S. government’s PACC 2030 Investment Facilitation Team to support a pipeline of clean energy projects in the region.
“Today we reinforce the closeness, strength, and depth of our over 200 years of friendship and cooperation,” Bond said, noting that upon her arrival here, she had “promised to work to strengthen our countries’ unique Bond further, to deepen and grow our already close relationship, and to ensure that our cooperation continues to yield positive results for both of our countries.
“We share Trinidad and Tobago’s urgency in contributing to global energy and food security. We have listened to the government of the Republic of Trinidad and Tobago’s message that it has the capacity and willingness to facilitate economic and humanitarian crises around the region and the world,” Bond added.
Rowley told reporters that Trinidad and Tobago is the largest LNG exporter in the region, with an installed capacity to process 4.2 billion cubic feet per day (bcfd) into LNG, petrochemicals, and power. Its gas production is just under three bcfd.
He acknowledged that even with Washington’s license granting, it could take years of investment and development to bring Venezuelan gas to Trinidad and boost LNG exports.
“It’s a win-win situation for all because energy security in the Caribbean is also energy in the United States,’ Rowley added.
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