The strategic emphasis on gas reflects Venezuela’s challenging crude profile, as the country’s heavy oil requires more expensive and complex refining, resulting in discounted barrel prices. While Venezuela is frequently cited as holding the world’s largest oil reserves, independent estimates place economically recoverable volumes substantially below official figures. The gas focus aligns with Shell’s infrastructure position and market projections showing LNG demand growing 65 percent to 700 million tonnes annually by 2050, according to the company’s latest LNG Outlook report.
Shell’s development plans involve transporting Venezuelan gas production initially to Trinidad and Tobago for processing into liquefied natural gas before shipment to international markets. Beyond Loran, where BP is also participating, Shell maintains involvement in the Dragon field. The number of LNG-importing countries has expanded from 36 to 49 since Shell began publishing its outlook in 2017, with Chinese purchases increasing 250 percent and global LNG trade rising approximately 60 percent over that period. The company’s latest report identifies data centers as an emerging demand source for LNG, including in mature Asian markets such as Japan.
BP has similarly positioned itself in Venezuelan gas through investments in Loran and the neighboring Cocuina-Manakin project. A Venezuelan government delegation led by Hydrocarbons Minister Paula Henao and Venezuelan Chargé d’Affaires in the United States Johann Álvarez visited Shell facilities in August to review technical capabilities in offshore exploration and high-complexity reservoir development. On the mainland, PDVSA and Shell are evaluating options to expand production and gas handling capacity at the Muscar operating complex in Monagas state.
This article was curated and published as part of our South American energy market coverage.
