In a dramatic turn for Caribbean energy relations, Venezuela has announced the immediate suspension of all energy cooperation agreements with Trinidad and Tobago, sending shockwaves through the region’s already fragile gas market. The decision, confirmed by Venezuelan President Nicolás Maduro on the evening of October 27, 2025, comes amid escalating geopolitical tensions and follows the recent arrival of a U.S. warship in Trinidadian waters—a move Caracas has denounced as a direct threat to Venezuelan sovereignty.
The suspension, which Venezuelan authorities say is precautionary, directly affects major joint ventures such as the much-anticipated Dragon natural gas field project. According to Reuters, Venezuela’s oil ministry revealed plans to ask the presidency to suspend a broad energy cooperation framework with Trinidad and Tobago, including all ongoing and planned gas projects. This move, as reported by Quantum Commodity Intelligence, comes in the wake of the USS Gravely’s docking in Trinidad and Tobago on October 26, which Venezuelan officials interpret as a sign that the twin-island nation is aligning itself with the United States against Venezuela.
During his regular broadcast, Con Maduro, the Venezuelan president minced no words: “On the aircraft carrier of the supremacists of the US empire against Venezuela and South America, I have approved the precautionary measure of the immediate suspension of all the effects and the agreements. That is why I have decided to take this decision. What the supremacists want is Venezuela’s riches.” He further explained that the matter would be referred to the Council of State, the Supreme Court of Justice, and the National Assembly for further structural action.
Venezuelan Vice President Delcy Rodriguez, who earlier in the day had recommended the suspension, stated, “We are responsibly proposing to the Head of State to denounce it immediately. And, as a consequence, to suspend all gas agreements that Venezuela maintains with Trinidad and Tobago.” She cited Article 13, number 3 of the 2015 Energy Cooperation Framework Agreement—which was renewed for five years in February 2025—as the legal basis for Venezuela’s unilateral withdrawal. Rodriguez lamented the state of bilateral relations, calling Trinidad and Tobago “a neighbouring brotherly country with solid historical ties,” but accused Prime Minister Kamla Persad-Bissessar’s new government of “joining the US agenda to attack a Caribbean brotherly people, to attack Venezuela, to attack Colombia, to attack South America, in a really surprising way.”
The heart of the matter, however, is energy. The Dragon gas field, discovered by Venezuela’s state-owned PDVSA in 2013/2014, contains an estimated 4.2 trillion cubic feet of natural gas. With initial production projected at 150 to 185 million cubic feet per day—and the potential to reach 350 million cubic feet daily in later phases—the field represents a crucial supply source for Trinidad and Tobago, whose own gas reserves have been dwindling for years. Trinidad’s National Gas Company signed a 30-year license with PDVSA to develop Dragon in December 2023, with Shell as the project’s operator. Hopes were high that the first gas would be available by 2027, a lifeline for Trinidad’s petrochemical and liquefied natural gas (LNG) industries, both of which have suffered from declining domestic output.
But the geopolitical winds have shifted. According to Energy Capital & Power, Venezuelan officials now insist that any future gas supply arrangements will require payment—no more preferential deals—reflecting a hardening stance as regional alliances realign. The suspension of the Dragon project, and potentially others like the Manatee field (which straddles the maritime border and is being developed independently by Shell on the Trinidad side), throws the future of Trinidad’s energy sector into question.
Prime Minister Kamla Persad-Bissessar, for her part, has responded with defiance. “No one, be it the Venezuelan government, Caricom or any other entity, will pressure or blackmail my Government into retreating from the fight against the drug cartels,” she declared, as reported by the Trinidad Guardian. “The last Government mistakenly placed all their hopes in the Dragon project. We have not done so, therefore, we’re not susceptible to any blackmail from the Venezuelans for political support.” She emphasized that Trinidad’s future “does not depend on Venezuela and never has,” and that her administration is pursuing economic growth across both energy and non-energy sectors.
The prime minister’s stance has not silenced critics at home. Opposition Leader Pennelope Beckles described the development as “alarming, unfortunate and deeply concerning,” warning that it presents “a complex and delicate challenge, requiring a measured and thoughtful response.” She placed blame squarely on the current government, stating, “This latest twist is alarming and consequential and rests squarely at the feet of the sitting T&T Government.” Meanwhile, former energy minister Stuart Young lamented the rapid deterioration of the energy sector, expressing concern for the future of the Manatee project and the broader implications for Trinidad and Tobago’s economic stability. “The management of the energy sector and its future requires competence and sophistication, and ability to think many moves ahead. Unfortunately, this is sorely lacking,” Young stated.
The numbers tell a sobering story. Trinidad and Tobago’s natural gas production averaged just 2.54 billion cubic feet per day in the first half of 2025, a steep decline of over 41% from the 2009 peak of 4.56 billion cubic feet per day. This contraction has left the country’s petrochemical and LNG plants starved for feedstock. Canadian firm Nutrien, one of Trinidad’s largest petrochemical operators, recently cited “a lack of reliable and economic natural gas supply” as a reason for shutting down part of its Trinidad operations, according to Ministry of Energy data.
For Venezuela, the suspension is as much about asserting sovereignty as it is about energy economics. Maduro and his ministers have repeatedly accused the U.S. of using Trinidad as a staging ground for hostile actions, including alleged CIA-backed mercenary plots. “The last time we gave them all the evidence of those who wanted to bomb the headquarters of what was the United States embassy in Caracas, they simply went out to protect us,” Maduro said, adding that a new group of mercenaries was captured over the weekend with plans to attack U.S. military vessels off the Venezuelan coast.
As the dust settles, both nations face an uncertain future. For Trinidad and Tobago, the loss of access to Venezuelan gas could further undermine its energy-dependent economy, while for Venezuela, the move signals a willingness to sacrifice lucrative partnerships in the name of geopolitical strategy. Regional observers, including industry analysts and Caribbean officials, caution that the episode underscores the strategic importance—and fragility—of cross-border energy cooperation in a region where politics and pipelines are increasingly intertwined.
With energy security, national pride, and international alliances all in play, the Caribbean gas chessboard has rarely looked more complicated—or more consequential. As negotiations stall and rhetoric escalates, both sides are left to ponder their next move in a high-stakes game with no easy answers.
