Shell Axes Trinidad Offshore Gas Project Amid Commercial Disputes

British oil major Shell has abandoned its offshore gas project in Trinidad and Tobago due to disagreements over commercial terms. The company had given the project a positive final investment decision last year but decided not to proceed after negotiations with Trinidad's National Gas Company (NGC) for the sale of the expected output failed.

The Aphrodite project was set to produce around 100 million cubic feet per day of natural gas, which would have provided a modest boost to the island's supplies. Shell had contracted a jack-up rig to drill production wells but has released it as part of its decision not to proceed with the project.

Trinidad is the largest LNG exporter in Latin America, and the decision represents a setback for the country's efforts to reverse years of declining natural gas output. The island expects to soon have access to gas from neighbouring Venezuela through cross-border developments led by Shell and BP, which would complement domestic output.