Venezuela-BP gas deal signals LNG-led comeback amid global demand surge

Venezuela has signed a deal with oil major bp to develop the country’s offshore gas resources. A development marked as a strategic shift toward an LNG-driven growth model, according to the African Energy Chamber (AEC).

The memorandum of understanding, announced on April 29, covers development of the Cocuina-Manakin field, which straddles the maritime border between Venezuela and Trinidad and Tobago, alongside new exploration in the nearby Loran area.

The deal formalised progress on a long-delayed cross-border resource that has faced years of setbacks due to sanctions and political uncertainty.

At the centre of the agreement is the scale of gas reserves. The Manakin-Cocuina field is estimated to hold around one trillion cubic feet of gas, while the broader Loran-Manatee system could contain up to 10 trillion cubic feet, most of it on Venezuela’s side.

Industry analysts said these volumes represent a significant new supply source at a time when global LNG demand is accelerating, particularly across Europe and Asia.

For Venezuela, the agreement signals a pivot away from its traditional oil-focused model toward gas development, which is seen as more aligned with current market dynamics and less capital-intensive.

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NJ Ayuk, executive chairman of the AEC, said the deal reflects renewed investor confidence. “Gas development, especially in partnership with established LNG infrastructure, gives Venezuela a faster and more commercially viable route back into global markets.”

A key advantage for Venezuela lies in its proximity to Trinidad and Tobago’s established LNG infrastructure, allowing gas from offshore fields to be processed and exported without the need for major new investments.

Under current plans, gas from the Cocuina-Manakin field could be transported to Trinidad for liquefaction, effectively integrating Venezuela into global LNG supply chains.

Momentum is also building across the wider offshore gas corridor. The Loran-Manatee project, involving Shell, is targeting production as early as 2027, with pipeline capacity expected to reach up to one billion cubic feet per day.

Meanwhile, the Dragon field, another cross-border development, is projected to deliver around 350 million cubic feet per day once operational. Together, these projects point to the emergence of a regional gas network linking Venezuela and Trinidad into a shared export platform.

Beyond the Caribbean, the development carries broader implications for global energy markets. Rising LNG demand and the need for diversified supply sources have increased the strategic value of new Atlantic Basin gas projects.

Venezuela’s re-entry into the market also reflects a wider trend of international oil companies, including Eni and Repsol, gradually re-engaging as conditions improve.

According to the AEC, the agreement highlighted a broader shift in emerging markets, where gas is playing a central role in energy transition and economic recovery strategies.