Uncertainty Surrounds Dragon Gas Deal Amid U.S. Policy Changes
Acting Prime Minister Stuart Young expressed uncertainty about the viability of the Dragon gas deal with Venezuela following U.S. policy changes. He emphasized the importance of continued engagement with U.S. officials and energy companies to protect Trinidad’s interests. Young noted that the deal is crucial for economic stability while addressing concerns over potential sanctions against Venezuela and highlighting alternative energy projects.
In a recent update, Acting Prime Minister Stuart Young stated that he cannot ensure the survival of the Dragon gas deal with Venezuela. Nevertheless, he reassured citizens that he would continue to advocate for Trinidad and Tobago’s interests. Young’s comments follow an announcement from U.S. President Donald Trump, who revoked the license allowing Venezuela to export oil to the U.S., citing non-compliance on Venezuela’s part regarding deported nationals.
The revocation was announced by Trump via Truth Social, where he criticized former President Biden’s concessions to Nicolás Maduro regarding an oil transaction agreement from November 2022. In response, Senator Marco Rubio indicated his intention to guide foreign policy efforts aimed at terminating all oil and gas licenses granted during the Biden administration, which he claims have supported the Maduro regime.
Young convened a Cabinet meeting and held a press conference in Port of Spain as Prime Minister Dr. Keith Rowley and his wife traveled to California. Though Rowley’s return is unannounced, Young has already reached out to U.S. Embassy officials and energy companies to gain insights following the recent changes in U.S. policy.
At this moment, Young stated there has been no immediate negative impact on Trinidad and Tobago but acknowledged the unpredictability of future U.S. government decisions. He highlighted the importance of the Dragon deal for Trinidad’s energy security and geopolitical relations with neighboring countries, emphasizing there could be no guarantees at this time.
Young also criticized Opposition Leader Kamla Persad-Bissessar for her remarks regarding Rowley, framing the gas deal as beneficial not just for specific political entities, but for all citizens. He asserted that the anticipated gas supply by 2027 would greatly assist in securing foreign exchange and supporting national services such as healthcare and education.
In addressing questions about the viability of the Dragon deal amidst fluctuating political sentiments, Young clarified that Trinidad has a 30-year commercial agreement with Venezuela regarding the Dragon and Cocuina-Manakin fields. He noted that payments to Venezuela have been initiated through customary industry practices but could not specify amounts due to confidentiality agreements.
Young expressed concern over the potential implications of sanctions against Venezuela, suggesting that such actions could jeopardize Trinidad’s future dealings with the Maduro government. He also mentioned that he had communicated with Venezuelan officials recently and affirmed a commitment to continue engagement should U.S. licenses be revoked.
He described Trinidad’s collaboration with Shell and BP as fortunate, citing both companies’ experience in managing operations in conflict-affected regions. Young indicated that these partnerships bolster Trinidad’s position, and emphasized the need for legal counsel regarding the future of the gas deals without the required U.S. licenses.
When questioned about the absence of a U.S. Ambassador in Trinidad, Young stated that ongoing communication with U.S. Embassy personnel remains stable. He also reassured that Trinidad is not solely dependent on the Dragon gas project, highlighting alternative opportunities such as the Loran-Manatee gas field, which could also enhance production levels in the nation.
In summary, Acting Prime Minister Stuart Young conveyed uncertainty regarding the future of the Dragon gas deal amidst changing U.S. policies towards Venezuela. He alluded to the potential economic benefits of the deal while emphasizing the need for continued diplomatic engagement. The government remains committed to exploring alternative energy opportunities and ensuring Trinidad and Tobago’s interests are safeguarded in light of geopolitical shifts.
Original Source: trinidadexpress.com
