Mariscal Sucre project signals entry of Venezuela as major LNG exporter

Petroleum News Alaska Staff

The Ministry of Energy and Mines of the Bolivarian Republic of Venezuela, PDVSA, Shell Gas & Power and Mitsubishi Corp. said June 19 they have signed a framework agreement setting the scope for the development of the North of Paria gas fields through the Mariscal Sucre liquefied natural gas project.

Shell said the project centers on the development of 10 trillion cubic feet of gas resources in the Norte de Paria fields for both export and domestic use and includes the construction of an LNG terminal with an estimated capacity of 4.7 million tonnes per annum and the supply of up to 300 million cubic feet per day of gas to the local market. In addition, it allows for the exploration for new reserves around the existing fields.

A project development agreement will be concluded within the next few months, Shell said, and engineering and other studies will be done to “reconfirm the viability of the project.” Startup of the $2.5-$3 billion project is expected in 2007.

Linda Cook, the CEO of Shell Gas & Power, said: “Shell is a world leader in LNG and will bring its commercial and technical expertise and global reach to the project. This complements our strategy for LNG growth and offers an outstanding opportunity to contribute to the growth and prosperity of both Sucre State and Venezuela.”