Shell announced it will sign an agreement to operate the Loran gas field in Venezuela, adding a new production asset to its portfolio. The Loran‑Manatee field holds about 7.3 trillion cubic feet of recoverable gas on the Venezuelan side, and Shell’s agreement is part of a broader package that also includes the Dragon offshore gas project and onshore oil and gas fields such as Carito and Pirital.
The agreement, signed on April 13, 2026, follows a U.S. Treasury license that allows Shell to negotiate contracts in Venezuela. The Loran field is expected to begin natural gas production in 2027, with a pipeline capacity upgrade to 1 billion cubic feet per day to feed Trinidad’s Atlantic LNG facility, which has been operating below capacity due to gas shortages.
Shell’s expansion into Venezuela aligns with its strategy to diversify upstream operations and secure long‑term gas supplies amid global supply uncertainties. The Loran deal strengthens Shell’s position in the Caribbean and Latin American LNG market, positioning the company to supply a key regional LNG hub and to offset potential disruptions in other gas sources.
The agreement also reflects a shift in U.S. sanctions policy, which has historically limited foreign investment in Venezuela’s oil and gas sector. By securing operational rights, Shell can capitalize on the Loran‑Manatee field’s estimated 10.25 trillion cubic feet of reserves, of which 7.3 tcf lies on the Venezuelan side.
Shell’s broader Venezuelan portfolio includes the Dragon offshore gas project, expected to deliver gas to Trinidad by Q3 2027, and onshore exploration in Monagas state. The combination of these assets positions Shell to increase its LNG output and to support its global gas supply strategy.
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