Shell Scraps $3 Billion Aphrodite Gas Project Over Commercial Disputes

British oil major Shell has put its Aphrodite gas project in Trinidad and Tobago on hold due to disagreements over commercial terms. According to sources, Shell had given the project a positive final investment decision last year but decided not to proceed with development after negotiations with Trinidad's National Gas Company (NGC) failed.

The NGC acts as Trinidad's gas aggregator, purchasing from producers and supplying it to downstream users. Shell had contracted a jack-up rig to drill production wells for the project, but has released the rig due to the decision to halt the project.

The decision represents a setback for Trinidad's efforts to reverse years of declining natural gas output. The Aphrodite project was expected to produce around 100 million cubic feet per day of natural gas, providing a modest boost to the island's gas supplies.