The Trinidad and Tobago NGL (TTNGL) has reported an after-tax loss of TT$35.8 million (US$5.7 million) following the United States government’s revocation of licences related to the exploration of gas fields in Venezuela.
“Following the announcement of the revocation of licences issued by the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, regarding the exploration of gas fields in Venezuela, management has re-examined its impairment assessment of the company’s shareholding investment in the Phoenix Park Gas Processors Ltd (PPGPL) group,” TTNGL stated in its condensed interim financial statements for the six months ended June 30, 2025.
“This review was conducted based on the assessed most likely outcomes and risks associated with updated inputs and cash flows provided by PPGPL and the National Gas Company of Trinidad and Tobago,” the company added.
The assessment led to the recognition of an impairment loss of TT$85.2 million, contributing to the after-tax loss of TT$35.8 million, compared to a profit after tax of TT$46.7 million in 2024.
In April, the United States revoked the OFAC licences that allowed Trinidad and Tobago to pursue natural gas projects with Venezuela, including the Dragon field and the Cocuina-Manakin field. These licences had permitted multinational energy companies Shell and BP, along with Trinidad’s state-owned National Gas Company (NGC), to develop offshore gas fields near the Venezuelan maritime border. The Dragon field alone holds an estimated 4 trillion cubic feet of gas, with first exports originally scheduled for 2026.
Trinidad had already been paying over US$1 million annually in taxes to Venezuela for the anticipated 20-year Dragon project. The revocation, citing Venezuela’s failure to restore democratic norms and manage illegal migration, has effectively frozen the deal.
The Energy Chamber of Trinidad and Tobago described the situation as a significant setback for the country’s energy sector.
“Importation of pipeline gas from Venezuela for processing and onward sales to international markets as either LNG or petrochemicals remains a significant economic opportunity for Trinidad and Tobago. It is important that the government of Trinidad and Tobago continues to engage actively with both the government of the United States and Venezuela to find a mechanism to pursue this opportunity,” the Chamber said.
Prime Minister Persad Bissessar, following her swearing-in, suggested that her administration would not prioritize the Dragon field project, unlike previous People’s National Movement (PNM) governments.
“We will be foolish not to look elsewhere, and we should have started that search long ago; we should not have put everything into the Dragon gas. That is dead. The (PNM) kept it alive for 10 years, and if you couldn’t do that in 10 years, you cannot do it now,” she told reporters, adding that potential oil and gas deposits in Tobago’s territorial waters could offer alternatives.
She also noted that the Dragon gas project was not discussed in her discussions with United States Secretary of State Marco Rubio shortly after taking office.
TTNGL, incorporated in 2013 by the National Gas Company to allow public participation in an Initial Public Offering (IPO) in PPGPL, benefited from its PPGPL investment, which recorded an after-tax profit of US$19.3 million for the six-month period. TTNGL’s share of the profit was TT$50.8 million.
However, TTNGL has not declared or paid dividends to shareholders due to impairment issues.
“TTNGL continues to explore the options available to remedy this, subject to requisite stakeholder and statutory approval. The success of the Government’s continued commitments to further exploration and continued efforts to secure a new OFAC license has a direct impact on the prospects for additional gas volumes to PPGPL. Should these materialise, they can result in improvements in the financial performance of PPGPL and, consequently, TTNGL. We remain committed to updating shareholders on these matters,” the company said.
