Shell targets Venezuelan natural gas over heavy crude

Shell sees stronger competitive advantages in Venezuelan natural gas than in the country's heavy crude oil, CEO Wael Sawan said at an event in London on October 6, 2026, according to a report by Reuters. Sawan stated that his outlook for the country is cautiously optimistic and noted that confidence will not return overnight.

The British major signed five agreements to develop oil and gas projects in Venezuela in June. The deals include the offshore Loran gas field, which holds estimated reserves of 7 trillion cubic feet. Alongside Loran, where BP is also expected to participate, Shell is involved in the Dragon field. BP is also investing in the neighboring Cocuina-Manakin project.

The company plans to transport natural gas production to neighboring Trinidad and Tobago. The gas will be processed there into liquefied natural gas (LNG) and shipped to international markets. Shell notes that heavy Venezuelan crude requires expensive refining and trades at a discount, while independent estimates place its economically recoverable oil reserves far below official figures.

According to Shell's latest LNG Outlook report, global LNG demand is projected to increase 65% to 700 million tons per year by 2050. Since Shell began publishing the study in 2017, the count of importing countries has risen from 36 to 49, Chinese purchases surged 250%, and global LNG trade expanded around 60%. The company also highlighted data centers as an emerging demand source, including in mature Asian markets like Japan.