In a move poised to reshape the Caribbean energy landscape, the United States has granted Trinidad and Tobago permission to resume development of a long-awaited offshore gas venture with Venezuela. The authorization reactivates discussions over the Dragon field, a massive natural gas reserve straddling the maritime border between the two nations.
The clearance, issued by the U.S. Treasury Department, follows months of diplomatic back-and-forth after Washington revoked the prior license earlier this year amid tightening sanctions on Caracas. Trinidad’s Attorney General, John Jeremie, confirmed that the new license enables Port of Spain to negotiate directly with Venezuela on the project—without breaching existing American restrictions.
The Dragon field, estimated to hold roughly 120 billion cubic meters of gas, lies within Venezuelan waters but connects geologically to Trinidadian fields already operated by Shell. The project’s revival is expected to reinvigorate Trinidad’s energy sector, which has seen its natural gas output steadily decline over the past decade.
Officials in Port of Spain view the decision as a critical opportunity to stabilize domestic supply and maintain the island’s role as the Caribbean’s leading LNG exporter. Industry analysts suggest it could also serve as a diplomatic bridge between Washington and Caracas, testing whether economic cooperation can coexist with ongoing geopolitical friction.
The development comes amid heightened regional military activity, including increased U.S. naval presence in the southern Caribbean—a reminder that energy politics in this hemisphere remain inseparable from power projection. Still, for Trinidad and Tobago, the renewed license signals a rare convergence of national interest and international tolerance: a chance to turn diplomacy into fuel.
