XRG enters Venezuela with stake in Loran offshore gas project

XRG is expanding its international natural gas portfolio into Venezuela after securing an interest in the offshore Loran gas license, which contains more than 4 Tcf of proven gas resources.

The international energy investment company established by ADNOC said it was awarded the Loran license by the Venezuelan government, with PDVSA Gas transferring an interest in the license to XRG. Subject to regulatory approvals, XRG will participate in the project alongside bp and UCC.

The companies will hold equal interests in the offshore license, according to XRG.

Loran is part of the larger Loran-Manatee gas accumulation, which straddles the maritime boundary between Venezuela and Trinidad and Tobago. The investment gives XRG access to a substantial offshore gas resource with a potential route to market through existing infrastructure.

“Venezuela holds significant gas resources and has the potential to play a greater role in meeting regional and international energy demand,” said Mohamed Al Aryani, president, international gas at XRG.

Al Aryani said the investment reflects XRG’s strategy of partnering on gas resources that have access to established infrastructure and identifiable markets.

“By connecting Venezuelan gas with established infrastructure, we aim to support the responsible development of these resources, strengthen regional energy integration and create long-term value for Venezuela, our partners and local communities,” he said.

XRG described the Loran Phase 2 investment as part of its effort to establish a broader gas and LNG platform in Latin America. The company is assembling an international portfolio intended to connect gas resources with infrastructure and global markets.

The Venezuelan investment complements XRG’s existing and planned positions across the Atlantic Basin and other major gas-producing regions.

Its portfolio includes an interest in Rio Grande LNG in the United States and Argentina LNG, the latter subject to regulatory approvals. XRG also has positions in Egypt through Arcius Energy, Azerbaijan’s Absheron field and Southern Gas Corridor, Turkmenistan’s Offshore Block 1 and Mozambique’s Area 4 concession.

XRG said its participation in Loran Phase 2 remains subject to definitive license and development arrangements, governmental and regulatory approvals and applicable international sanctions and compliance requirements.