Venezuela Offshore LNG Terminal
|This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.|
Venezuela Offshore LNG Terminal was a proposed LNG terminal off the coast of Venezuela. There have been no development updates since 2016 and it is presumed to be cancelled.
- Parent: Rosneft (50%), Petroleos de Venezuela SA (50%)
- Location: off the coast of Venezuela
- Coordinates: 10.784384, -63.183186 (approximate)
- Status: Cancelled
- Type: Export
- Start Year:
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
In 2016 a preliminary deal was signed by Rosneft of Russia and Venezuela's state petroleum agency PDVSA for the development of an LNG export project. Under the joint venture agreement, the two companies were to implement a large-scale project for production, treatment and sale of natural gas from Venezuela's offshore fields at Patao, Mejillones and potentially Río Caribe. Rosneft was to be the operator of the joint venture, with both companies holding a 50 percent stake. The agreement was a continuation of the memorandum signed by the two companies in June 2015 launching feasibility studies for the project. At the time, it was estimated that production from the three fields could reach 25 million cubic meters per day, providing the potential to develop an LNG export project in Venezuela.
In June 2019 an accord was signed by Russia and Venezuela giving Rosneft tax breaks to produce and export gas from the Patao and Mejillones fields, suggesting that further developments might be on the way. Rosneft reportedly planned to make a final investment decision by 2020. However, in March 2020 Rosneft announced that it was ceasing operations in Venezuela and selling all of its assets in the country.
As there have been no development updates since 2016, the project is presumed to be cancelled.
Articles and resources
- "Rosneft, PDVSA mulling LNG export project in Venezuela" LNG World News, February 22, 2016
- Fabiola Zerpa and Peter Millard, Russia Squeezing Embattled Venezuela for Tax-Free Gas Expansion Bloomberg, June 19, 2019
- "Rosneft to make FID on two Venezuelan fields in 2020". AA Energy. May 22, 2018.
- Kurmanaev, Anatoly; Krauss, Clifford; Kramer, Andrew E. (March 28, 2020). "Russian State Oil Company Rosneft, in Sudden Move, Sells Assets in Venezuela". The New York Times.
- "Rosneft shifts Venezuela burden to Russian state". Argus Media. March 28, 2020.
- "Russia nationalizes Venezuelan assets to skirt U.S. sanctions". World Oil. March 29, 2020.
- Cohen, Ariel (April 1, 2020). "Russia's Rosneft Cuts Ties With Venezuela While U.S. Offers A Peace Plan". Forbes.