South American nation Suriname has signed an agreement with Trinidad and Tobago to boost energy cooperation, reported Reuters.

According to sources, the memorandum of understanding (MoU) could pave the way for the transportation of natural gas from Suriname to Trinidad and Tobago via pipeline.

Trinidad and Tobago has been looking for ways to increase its natural gas supplies.

Government figures show that the Caribbean nation can process around 4.2 billion cubic feet (bcfd) of gas per day into liquefied natural gas (LNG) and petrochemicals, but its present output is less than 2.7bcfd.

The countries signed the MoU when Suriname President Chandrikapersad Santokhi met with Trinidad Prime Minister Keith Rowley in Port of Spain, according to the Suriname authorities.

The prime minister’s office of Trinidad and Tobago said that the two nations will now seek to establish technical teams to conduct feasibility studies to decide the next step.

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By GlobalData

In addition, the government of Suriname announced that it would shortly hold a meeting with Guyana and Trinidad to discuss future strategic collaboration between the three nations.

The preliminary deal will involve researching the viability of laying a pipeline hundreds of miles beneath the ocean to connect Trinidad to the gas fields of the South American country, the sources said.

Recently, sizeable oil and gas have been discovered by Suriname and Guyana.

Trinidad and Tobago has been attempting to gain access to fresh gas supplies in the hope of restarting an inactive LNG processing unit and operate its petrochemical factories at full capacity.

The Caribbean country has also urged the US to amend the terms of the license for the Dragon gas project, which is said to contain up to 4.2 trillion cubic feet of gas.