Shell signs Venezuela gas deal targeting 2027 exports

Shell signed landmark oil and gas agreements with Venezuela on March 5, 2026, centred on the Dragon Gas project, which plans to begin exporting natural gas to Trinidad's Atlantic LNG plant in Q3 2027 — a deal that could reshape Caribbean energy supply for decades.

On March 5, 2026, Royal Dutch Shell signed multiple oil and gas cooperation agreements with the Venezuelan government and state-owned oil company PDVSA. The signing ceremony was presided over by Venezuela's acting President and witnessed by US Interior Secretary Doug Burgum. The agreements span offshore gas development, onshore hydrocarbon exploration, local workforce development, and technical cooperation with international partners.

At the heart of the deal is the Dragon offshore gas field. According to source material, the field is estimated to hold approximately 4.5 trillion cubic feet of natural gas. Shell and its partners plan to achieve initial daily production of 350 million cubic feet, with the gas transported to Trinidad's Atlantic LNG plant for liquefaction and export. Plans to begin gas exports to Trinidad are targeted for Q3 2027.

Shell also signed technical and commercial agreements with Venezuelan engineering firm VEPICA, American oilfield services company Baker Hughes, and energy solutions firm KBR. Onshore development of the Carito and Pirital fields in the Monagas region's Punta de Mata Division is also included in the agreements.

If the Dragon Gas project delivers on its Q3 2027 timeline, the impact on Trinidad and the wider Caribbean energy market would be substantial. Atlantic LNG has been operating well below capacity due to upstream supply constraints, and a new, reliable gas feed from Venezuelan waters could revive the plant's export volumes and the government revenues that depend on them.

Beyond Trinidad, the deal positions Shell as a central node in Caribbean energy infrastructure at a moment when the region is navigating competing pressures — aging fossil fuel systems, renewable energy ambitions, and persistent energy insecurity across smaller island states.

"Initial daily production from the Dragon Gas project is expected to reach 350 million cubic feet, with gas transported to Trinidad's Atlantic LNG plant — a facility that has faced significant production declines due to regional supply shortages."

— ChemNet / Reuters, sourced from Shell-Venezuela agreement details, March 5, 2026

Social Conversation: neutral

Social media posts report Chevron and Shell nearing major oil production deals in Venezuela with a neutral tone.

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Voices on X

"#BREAKING | 🇺🇸 🇻🇪 — Chevron and Shell Near Major Oil Production Deals in Venezuela

International oil majors Chevron and Shell are close to finalizing the first significant oil production agreements in Venezuela since the U.S. capture of President Nicolás Maduro in January 20"

@TGEThGlobalEye · World · 43m ago · 1 engagements · View on X

"Chevron and Shell are close to signing their first major oil production agreements in Venezuela since the U.S. takeover of President Maduro in January. 🇻🇪🛢️

Chevron plans to expand production in the Orinoco Belt (Ayacucho 8 area), while Shell is targeting the Carito and Pirit"

@ruswar · 46m ago · View on X

"Chevron and Shell Move Closer to New Oil Deals in Venezuela https://t.co/ynh7h6ACGt"

@Ldyheart · Earth · 58m ago · View on X

"20260311 VENEZUELA Chevron and Shell are close to signing the first major oil production deals in Venezuela since the U.S. captured President Maduro in January. https://t.co/3PgWgabNfm"

@comlabman · United States · 1h ago · View on X

Based on 20 posts from X · Mar 11, 2026

Optimistic — regional energy security: Trinidad's Energy Minister Roodal Moonilal has pointed to Q3 2027 as the target for gas exports to begin, framing the Dragon project as a direct solution to the supply shortfall that has hampered Atlantic LNG's output. For Port of Spain, this deal represents a potential restoration of a critical revenue stream.

Commercially bullish — Shell and international partners: Shell and its technical partners view the agreements as a strategic expansion into the Latin American market at a moment when Venezuela's new Hydrocarbons Law has significantly improved commercial conditions. The multi-party collaboration integrates operational, engineering, and technological expertise across the entire project chain.

Cautious — structural and policy risks: Analysts note that the cooperation still faces significant headwinds, including aging Venezuelan infrastructure and the sustainability of current US policy toward Caracas. The long-term viability of these agreements depends heavily on factors outside Shell's or Trinidad's direct control.

For too long, the Dragon Gas project has been exactly that — a dragon, mythical in promise and perpetually out of reach. The March 5 agreements between Shell and Venezuela are the most concrete step toward making it real that the Caribbean has seen, and the region should take notice.

Trinidad's energy economy has been under strain, and Atlantic LNG running below capacity is not an abstract financial concern — it flows through to government revenues, public services, and regional economic confidence. A reliable gas supply from Dragon could genuinely change that calculus.

But Caribbean governments and citizens would be wise to hold their optimism to account. The road from signing ceremony to first export is long, and it runs through Venezuelan infrastructure that has deteriorated over years of underinvestment, and through Washington's policy corridors where attitudes toward Caracas have historically been volatile. The deal is promising. The moment it becomes transformative is when the gas actually flows.