ENERGY minister Phillip Paulwell has set a deadline of January 2016 for the completion of the expansion and upgrade of the state-run oil refinery Petrojam.
Paulwell, guest speaker on Monday at two Constant Spring Road-based service stations which have introduced the eco-friendly Ultra Low Sulphur Diesel (ULSD) fuel, said the construction had to be along that timetable.
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A section of the government-operated oil refinery Petrojam.
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“We have been told the new generating capacity of electricity will be in place by January, 2016, so we have to finish the expansion and upgrade of the refinery by then,” Paulwell told Auto.
Paulwell, the minister of science, technology, energy and mining, said he would advance the argument at tomorrow’s PetroCaribe Summit in Nicaragua.
Jamaica is one of 18 countries which benefit from the PetroCaribe agreement, drafted by the now deceased
The Jamaican government says it will establish a “firm” schedule to implement the upgrading and expansion of the Petrojam refinery, as it seeks to make the operations more modern and efficient. Science, Technology, Energy and Mining Minister Phillip Paulwell, said the issue will be discussed at the 8th PetroCaribe Summit, scheduled for June 29, in Nicaragua. “We have been talking too long about the upgrade of this refinery, it has been producing for us for close to 40 years. We are now on a firmer path, especially since the new president of Venezuela has assumed office, to pursue some of the things that were not done, over the last five years, including the expansion and upgrade of the Petrojam refinery,” he said. Paulwell said the government is hoping to move this process a step closer to fruition, with the Venezuelan government having already committed, as part of the economic zone of PetroCaribe, a relationship which will see value added, along with efficiency. In May, during the PetroCaribe ministerial meeting in Venezuela member states agreed on an economic zone to boost regional development and Paulwell said that Jamaica will eventually produce its own ultra-low sulphur diesel, as this will be synchronised with upgrading of the refinery. “We are importing this fuel, and it’s not our intention that this will be a long-lasting activity. The day will soon come when we will be producing this fuel in Jamaica.” 2006 agreement In 2006 Jamaica signed an agreement with Venezuela for a 49 per cent stake in Petrojam, and as part of the agreement, production should have moved from an average of 30,000 to 50,000 barrels of petroleum products daily, starting in 2007, but this output has not yet been realised. “We are now back on track. We have to update some of the financials, and the first thing the Board has agreed to do, with the support of Venezuela, is to get that front-end engineering design project updated, so that we have figures that are more realistic than the2007/2008 figures,” Paulwell said. Paulwell said that many of the features of the expansion project are now more positive than they were in 2007, to justify the expansion and upgrading of the refinery. “It will enable us to produce those things that we use in Jamaica – LPG, gasolene, and low sulphur diesel – so that we will be almost self-sufficient, and be able to export some of it,” he said, pointing out that the by-product, petcoke, will enable the generation of 100 megawatts of cheap electricity. “What we will be doing this weekend in Nicaragua is to establish the firm schedule towards its implementation and funding,” the minister said. Upgrading of the refinery will ensure its viability in the long-term and allow for the installation of treatment facilities to meet new environmental specifications for diesel oil, and gasolene. Additionally, Paulwell said discussions will be held at the Summit on the trade compensation mechanism aspect of the PetroCaribe Agreement, which allows Jamaica to trade goods and services, as part of the process of repaying PetroCaribe loans. “We have a very significant development, which we hope will be crystallised this week, in Nicaragua,” he said. Under PetroCaribe, Jamaica and other Caribbean countries benefit from preferential rates on crude oil, refined products, and LPG or its energy equivalent, from Venezuela. The payment arrangement allows for purchase of oil on market value for 40 per cent up-front, within 90 days. The remainder of the payment can be made over a period of 25 years with one per cent interest, provided that oil prices are above US$40 per barrel. – CMC Read more: Opposition spokesman on Industry, Commerce and Energy Gregory Mair is proposing that the administration make it mandatory for all government buildings to be fitted with solar photovoltaic systems. “Every government building must have solar panels energising their lights, fans and other equipment. Not only will it bring savings in foreign exchange used by JPS to purchase fuel, but it will also reduce the electricity bills of Government and stimulate the growth of an industry of which Jamaica could become the Caribbean leader,” Mair pointed out during his contribution, last week, to the Sectoral Debate in Parliament. He also wants the Government to introduce policy to make it compulsory for solar photovoltaic systems to be installed in government-related schemes. “Let the Government drive demand in solar energy. If done properly, we could see an industry where we have solar photovoltaic panels and solar heating assembly plants exporting to the Caribbean and, by extension, the world,” he added. Discussing how this project could become a reality, Mair said the Government should make the Petroleum Corporation of Jamaica (PCJ) more efficient. “As we are aware, the PCJ is funded by the one per cent commission earned from the sale of fuel to Petrojam. The PCJ does not require all this funding and the majority of it should be dedicated to building this industry. It is a win-win all around,” Mair explained. Turning to the PetroCaribe agreement, Mair argued that Jamaica could pay for fuel purchased under this accord with goods made locally, not only manufactured items but also produce. According to Mair, Article IV of the PetroCaribe agreement states, among other things, that, “With regard to deferred payments, Venezuela shall be able to accept that the partial payments be done with products, goods and/or services, previously agreed by the parties, based on preferential rates proposed by the Government of Jamaica.” He noted that Venezuela imported a lot of products and Jamaica had failed to take advantage of this clause of the PetroCaribe deal. “Our Government should meet with our counterparts in Venezuela, like many other countries have, and agree on the goods we will be selling them in exchange for their fuel. Once this is done, Government should encourage the establishment and expansion of the industries that will capitalise on this arrangement,” the opposition spokesman stated. Read more: Opposition spokesman on Industry, Commerce and Energy Gregory Mair is proposing that the administration make it mandatory for all government buildings to be fitted with solar photovoltaic systems. “Every government building must have solar panels energising their lights, fans and other equipment. Not only will it bring savings in foreign exchange used by JPS to purchase fuel, but it will also reduce the electricity bills of Government and stimulate the growth of an industry of which Jamaica could become the Caribbean leader,” Mair pointed out during his contribution, last week, to the Sectoral Debate in Parliament. He also wants the Government to introduce policy to make it compulsory for solar photovoltaic systems to be installed in government-related schemes. “Let the Government drive demand in solar energy. If done properly, we could see an industry where we have solar photovoltaic panels and solar heating assembly plants exporting to the Caribbean and, by extension, the world,” he added. Discussing how this project could become a reality, Mair said the Government should make the Petroleum Corporation of Jamaica (PCJ) more efficient. “As we are aware, the PCJ is funded by the one per cent commission earned from the sale of fuel to Petrojam. The PCJ does not require all this funding and the majority of it should be dedicated to building this industry. It is a win-win all around,” Mair explained. Turning to the PetroCaribe agreement, Mair argued that Jamaica could pay for fuel purchased under this accord with goods made locally, not only manufactured items but also produce. According to Mair, Article IV of the PetroCaribe agreement states, among other things, that, “With regard to deferred payments, Venezuela shall be able to accept that the partial payments be done with products, goods and/or services, previously agreed by the parties, based on preferential rates proposed by the Government of Jamaica.” He noted that Venezuela imported a lot of products and Jamaica had failed to take advantage of this clause of the PetroCaribe deal. “Our Government should meet with our counterparts in Venezuela, like many other countries have, and agree on the goods we will be selling them in exchange for their fuel. Once this is done, Government should encourage the establishment and expansion of the industries that will capitalise on this arrangement,” the opposition spokesman stated. Read more: Still recovering from last year Prime Minister Samuel Hinds says Guyana has benefitted significantly from the Venezuelan oil initiative, PetroCaribe, launched in 2005. Hinds, speaking during a programme on the state-owned National Communications Network, said the initiative came at a time when many Caribbean countries were having difficulties purchasing petroleum given the high prices on the world market. Under the initiative, the brainchild of the late Venezuelan leader
Jerome Reynolds, Gleaner Writer The Jamaican and Venezuelan governments are to work out a new payment deal under PetroCaribe, which could see Jamaican cement being sold in that market under a special arrangement. The Energy Minister, Phillip Pauwell says, the Venezuelan government gave its assurance the deal will continue during a PetroCaribe summit on the weekend. Paulwell says the Jamaican Government is grateful for the continuation of the deal by the
The local oil refinery Petrojam, which has served Jamaica for a generation, should be shut down unless negotiations with the new Venezuelan government result in expansion plans, according to Energy Minister Phillip Paulwell. The plant expansion has been delayed for eight years. “In relation to Petrojam, this is a project that is well delayed. If Petrojam is not upgraded and expanded, we will have to shut it down. It is as simple as that,” Paulwell said at a press briefing at the Office of the Prime Minister on Thursday in Kingston. “So we are awaiting the settling in of the new government and we were promised that as soon as that occurs, there will be a very important meeting with the players.” Petrojam, the company, was incorporated 31 years ago. Government owns 51 per cent of the plant and Venezuela has the remaining 49 per cent since 2006. Petrojam is projected to earn US$21.2 million net profit for this fiscal year ending April 2014 on US$1.9 billion of revenues. The capital expenditure for the year is projected at US$26.9 million.
CHIEF Executive Officer (CEO) of Jamaica’s PetroCaribe Development Fund (PDF) Dr Wesley Hughes has said that even a facile victory by
Last week’s death of the Venezuelan president,