Shell Shelves Trinidad’s Aphrodite Gas Project Over Terms

British energy major Shell has temporarily shelved its Aphrodite offshore natural gas development in Trinidad and Tobago following unsuccessful negotiations over commercial terms with Trinidad’s National Gas Company (NGC), according to media reports.

Shell had approved a final investment decision for the project last year, signaling its intention to move ahead with development. However, negotiations with NGC over the sale of Aphrodite’s anticipated gas production failed to reach an agreement. The project was expected to supply approximately 100 million cubic feet per day (MMcf/d) of natural gas, offering additional feedstock to Trinidad’s energy and petrochemical industries.

NGC serves as Trinidad and Tobago’s gas aggregator. It purchases natural gas from producers and distributes supplies to downstream consumers, including petrochemical manufacturers and Atlantic LNG. Shell holds a 45% stake in Atlantic LNG, making the availability of reliable and competitively priced domestic gas strategically important to the company.

As part of the decision to pause Aphrodite, Shell has released a contracted jack-up drilling rig that was scheduled to drill production wells for the offshore development. The company said it will continue assessing the project’s broader integrated schedule, leaving open the possibility that development could resume if commercial conditions improve.

The postponement represents another challenge for Trinidad and Tobago, Latin America’s largest LNG exporter. The country has experienced years of declining natural gas production, which has reduced feedstock availability for LNG exports and petrochemical operations. Aphrodite’s planned output would have provided a relatively modest but important increase in domestic gas availability.

Commercial conditions, particularly gas pricing, have increasingly become a concern for the country’s petrochemical industry. Several petrochemical facilities have faced closures or operating challenges amid insufficient and costly gas supplies. The delay in Aphrodite could therefore prolong pressure on domestic gas availability and downstream production.

Trinidad is also pursuing alternative supply sources. The country is expected to gain access to natural gas from neighboring Venezuela as Shell and BP advance cross-border gas development plans. Both companies have received Venezuelan government licenses linked to projects designed to produce Venezuelan gas and transport it to Trinidad for processing and export.

These Venezuelan gas projects are considered important for restoring feedstock supplies to Atlantic LNG and strengthening Trinidad’s energy sector over the next decade. However, delays to Aphrodite underline the continuing challenges surrounding investment economics, gas pricing, infrastructure, and long-term supply security in the Caribbean energy market.

Impact on Product & Chemical Commodity Prices

Shell’s decision to pause Aphrodite is bearish for Trinidad’s near-term natural gas supply outlook, potentially limiting feedstock available to LNG and petrochemical producers. Reduced domestic gas availability could keep operating costs elevated for methanol, ammonia, and other gas-based chemical producers, while encouraging greater reliance on imported or Venezuelan gas. Consequently, methanol and ammonia prices could receive moderate upward support if supply constraints intensify. However, the impact should remain limited globally because Aphrodite’s planned 100 MMcf/d output was relatively small. For Chemanalyst-tracked commodities, regional natural gas tightness could strengthen feedstock costs and support chemical prices, particularly across Trinidad-linked methanol and ammonia markets.