Shell plc SHEL and Trinidad and Tobago’s National Gas Company (“NGC”) have finalized commercial agreements covering natural gas supplies from the Aphrodite offshore field, clearing a major hurdle that had delayed the project. The agreement follows months of negotiations over gas pricing and is expected to pave the way for development of the field.
NGC chairman Gerald Ramdeen said the finalized terms significantly improve the economics of the project for the state-owned gas company. According to NGC, the new terms provide 400% more value to the country compared with the terms previously negotiated.
Aphrodite’s First Gas Expected in 2027
The Aphrodite development is expected to deliver its first gas in the second quarter of 2027. NGC’s pipeline and gas infrastructure will play an important role in transporting the field’s production to the domestic market.
The project is expected to provide an additional source of natural gas for Trinidad and Tobago as the country deals with declining production and persistent supply challenges. NGC said the additional gas will support downstream operations and strengthen its ability to meet commitments to power producers, industrial customers and Atlantic LNG.
Gas Supply Challenges Add Importance to Project
Aphrodite comes at a time when Trinidad and Tobago’s energy sector has been dealing with years of declining natural gas production. Lower gas availability has weighed on LNG exports and contributed to the closure of several petrochemical facilities.
NGC purchases gas from producers and supplies it to downstream customers, including the petrochemical sector and Atlantic LNG, where Shell owns a 45% stake. The additional supply from Aphrodite could therefore help improve feed gas availability across the domestic energy system.
Shell Continues to Pursue Regional Gas Opportunities
The Aphrodite agreement is also part of a broader effort to strengthen Trinidad and Tobago’s gas supply. Shell has been pursuing cross-border gas opportunities involving Venezuela, with the objective of transporting Venezuelan natural gas to Trinidad for processing and export.
Shell has also been exploring the Loran offshore gas field, a transboundary resource shared with Trinidad and Tobago. The proposed development would involve tying subsea wells from Loran back to the Manatee platform in Trinidad, potentially supporting LNG production and exports through Atlantic LNG.
Aphrodite to Support Trinidad's Energy Sector
The finalized commercial agreements strengthen the framework for bringing Aphrodite’s gas reserves to market. NGC said the project should contribute to future domestic gas supplies, support downstream activity and increase its revenue-generating capacity.
For Shell, the agreement enables progress on an offshore development that can add to the company’s regional gas portfolio while supporting efforts to improve natural gas availability in Trinidad and Tobago. With first gas targeted for the second quarter of 2027, Aphrodite is set to become an important addition to the country’s efforts to strengthen its energy sector.
SHEL’s Zacks Rank & Key Picks
London-based Shell is one of the primary oil supermajors — a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some better-ranked stocks like CrossAmerica Partners LP CAPL, Marathon Petroleum Corporation MPC and Magnolia Oil & Gas Corporation MGY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CrossAmerica Partners engages in the wholesale distribution of motor fuels, consisting of gasoline and diesel fuel, and owns and leases real estate used in the retail distribution of motor fuels. The Zacks Consensus Estimate for CAPL’s 2026 earnings indicates 30.4% year-over-year growth.
Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for MPC’s 2026 earnings indicates 452.8% year-over-year growth.
Magnolia Oil & Gas is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. The Zacks Consensus Estimate for MGY’s 2026 earnings indicates 64.3% year-over-year growth.
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