Report: Shell shelves Aphrodite gas project offshore Trinidad and Tobago
Shell has paused its Aphrodite offshore gas project in Trinidad and Tobago due to unresolved commercial terms with the National Gas Company (NGC). The project, with peak production of 18,400 barrels of oil equivalent per day, was planned for 2027. Shell holds a 45% stake in Atlantic LNG, which would have used the gas. Negotiations are ongoing, and the project remains subject to regulatory approvals.
How this was made
The 30-second read
Why it matters
The hold reflects commercial risk and may delay expected cash flows, but Shell's broader portfolio and other projects could mitigate long‑term effects.
Market read
Shell's project pause signals short‑term supply challenges in the Caribbean gas market and may weigh on its upstream earnings outlook.
What to watch
Potential cross‑border gas deals with Venezuela and Shell's Manatee field development could offset the Aphrodite setback.
Background
Shell holds 100% working interest in Aphrodite; the project was slated for first gas in 2027 with peak production of ~18,400 boe/d.
Ticker impact
Shell has placed the Aphrodite offshore gas project on hold after commercial talks with Trinidad & Tobago's NGC broke down.
Downside pressure on SHEL share price pending resolution.
Project delay reduces expected 2027 gas output of ~107 MMcf/d, affecting cash flow and regional market sentiment.
Market effects
Highlights ongoing supply constraints in Caribbean gas market, may pressure LNG pricing.
Trinidad & Tobago's gas production outlook weakened, could affect Atlantic LNG utilization.
Limited global impact; primarily regional and Shell-specific.
Counterpoint
If Shell secures a new partner or renegotiates terms, the project could resume, turning the pause into a buying opportunity.
Key entities
- CompanyShell plc
Operator of the Aphrodite gas project.
- CompanyNational Gas Company (NGC)
Trinidad & Tobago's gas aggregator involved in commercial negotiations.
