US revokes licenses for Trinidad-Venezuela gas projects

On Tuesday, it was reported that the United States has canceled licenses given earlier for the development of two offshore gas projects between Trinidad and Tobago and Venezuela. Companies involved in these projects are required to shut down operations by May 27, Reuters informs.

Trinidad is the largest exporter of liquefied natural gas in Latin America and one of the world's leading suppliers of ammonia and methanol. However, the country is eager to explore offshore areas on the border with Venezuela to find new sources of raw materials.

Producers require American licenses to operate due to US restrictions against Venezuela. The projects operating under the exemptions have been a key source of revenue for the Caribbean country, which has vast natural gas reserves. Trinidad and Tobago, in turn, would have secured a regular supply of gas for processing. However, now the National Gas Company of Trinidad and British Shell, engaged in the development of these projects, should suspend operations.

The government of Trinidad and Tobago is ready to negotiate with the US authorities, Reuters reports.