Shell has given the go-ahead to contractor McDermott International Ltd to begin engineering work on the Manatee gas field development project located off the east coast of Trinidad and Tobago.

This project is crucial for Trinidad, which is the largest exporter of liquefied natural gas (LNG) in Latin America. However, due to a shortage of natural gas, the country’s flagship Atlantic LNG project and petrochemical plants have been operating at reduced capacity.

According to McDermott, they have received approval to proceed with an engineering, procurement, construction, and installation (EPCI) contract, pending an investment decision.

Trinidad and Tobago’s Energy Minister Stuart Young stated that he expects Shell to approve the project soon.

“I expect in a very short time frame I will hear about an FID (final investment decision) from Shell on Manatee,” Young said during a session in the country’s Parliament.

A spokesperson from Shell also confirmed that the project is moving forward, and they anticipate reaching a final investment decision next year.

The Manatee gas field is expected to produce 700 million cubic feet per day (mcf/d) by 2028, which will help alleviate the nation’s gas shortfall.

This field is part of the Loran-Manatee discovery, which is shared by both Trinidad and Venezuela. The estimated natural gas reserves in the field are around 10 trillion cubic feet (tcf), with 7.3 tcf on Venezuela’s side and the remaining 2.7 tcf on Trinidad’s side.

The two countries have been in negotiations for years to jointly develop the reservoir and have signed preliminary agreements. However, in 2019, the U.S. imposed sanctions on Venezuela’s energy industry, which caused a delay in the final deal.