Senior Reporter
kevon.felmine@guardian.co.tt
Renewed diplomatic engagement between T&T and Venezuela has revived hopes that long-delayed cross-border gas projects could move closer to reality. However, economists and former energy minister Carolyn Seepersad-Bachan say improved government-to-government relations are only the first step, warning that commercial, legal and geopolitical hurdles must still be overcome before projects such as Dragon and Loran-Manatee can deliver meaningful benefits.
The renewed engagement follows an exchange of letters between Prime Minister Kamla Persad-Bissessar and Venezuela’s acting President Delcy Rodríguez after T&T mounted a humanitarian response to the earthquakes that struck the neighbouring country in June. Since then, more than 230 tonnes of relief supplies have been delivered to Venezuela, while T&T has also facilitated vaccine shipments and approved overflight requests for humanitarian missions.
The diplomatic exchanges have renewed discussion over whether closer relations could help advance cross-border gas developments at a time when T&T continues to grapple with declining natural gas production.
Seepersad-Bachan described the recent engagement as “an important first step.”
“Cross-border energy projects cannot advance without constructive government-to-government relations. We have to understand that,” she said. Economist Dr Ronald Ramkissoon agreed stronger ties could create wider opportunities. “If diplomatic relations between these two countries continue to improve, this would be a definite plus for both countries. In fact, not only would cross-border gas projects likely advance, but there are other economic and non-economic benefits that can accrue to both countries but have never been adequately explored.”
Former minister in the Ministry of Finance, Mariano Browne also viewed the exchanges as positive but urged caution. “It represents a thaw in relations, and it represents goodwill, but it doesn’t necessarily translate into a stronger relationship where energy is concerned. So we’ll have to wait and see how that goes.”
Despite their differing perspectives, all three said additional Venezuelan gas would be important as T&T seeks to address its supply shortfall. Ramkissoon said additional gas would be “very important in terms of the availability of gas itself but also in terms of the signals this would send for future prospects of this country.”
Browne described additional supplies as “critical”, noting the country’s gas production remains well below its installed LNG processing capacity, leaving major plants underutilised.
Seepersad-Bachan said Venezuelan gas has become increasingly important because T&T faces “a structural energy security deficit. It can help restore LNG and petrochemical production while we still have spare capacity in our existing infrastructure. However, it should complement, not replace, domestic exploration and reserve replacement, which remain essential for long-term energy security.” Even with improving relations, all three cautioned that significant obstacles remain.
Seepersad-Bachan said political trust alone would not be enough to move projects forward. “Political trust is fundamental because these long-term projects require cooperation on licences, fiscal arrangements, security and regulation. Investors need confidence that agreements will survive political changes. However, trust alone is not enough. It must be supported by legally binding agreements and commercially viable project structures.”
Ramkissoon likewise pointed to geopolitics as a major consideration, saying diplomacy would be critical to addressing the interests of the United States, Caricom, Venezuela, T&T and multinational energy companies. Browne said commercial terms would ultimately determine how much the country benefits.
“We’re not clear about the pricing or the arrangements with respect to gas that will come from Venezuela. This is imported gas, so the value-added benefit is going to be considerably less when you import.”
While Ramkissoon said the economic gains from cross-border gas projects would likely be realised only in the medium to long-term, Seepersad-Bachan said additional gas could boost LNG and petrochemical production, exports, foreign exchange earnings and employment. Browne, however, cautioned against expecting Venezuelan gas to solve the country’s broader fiscal challenges. “The presumption that because we get gas from Venezuela, everything will be all right, is a little bit optimistic.”
Looking ahead, Seepersad-Bachan said the Government should build on the improved diplomatic climate by establishing a structured energy dialogue with Venezuela while continuing domestic exploration. Ramkissoon similarly argued that stronger diplomatic and economic relations with Venezuela and Caricom should form part of T&T’s long-term economic strategy.
