Expansion of Petrojam among new energy plans

New energy measures,including plans for a major expansion of the Petrojam oil refinery to 50,000 barrels per day,were announced yesterday by the minister of commerce, science and technology, Phillip Paulwell.

Paulwell told the weekly post Cabinet press briefing at Jamaica House that Cabinet earlier approved the establishment of a technical team to develop a financial package to fund the expansion of the refinery from its current 35,000 barrels a day. he said that proposals should start at the least US $ 50 million.

He said that the involvement of the private sector was among the options being pursued, as it should be a very attractive to private investors. But he added that Venezuela was also a possible investor.

In addition, Paulwell said that the local refinery could be further booster by implementation of the proposed Petrocaribe initiative under which Venezuela has suggested to Caribbean countries the creation of a new company Petrocaribe, to distribute the crude and refined oil products at lower prices.

The minister to host a meeting of the parties, including Venezuela, Cuba, the Dominican Republic and Caricom and possibly, Venezuelean president Hugo Chavez, as well as other interested countries as follow up to the July 10 meeting in Caracas, at which the proposal was made. The meeting is scheduled for August 26 and 27 in Montego Bay.

” I think it is very important for us, especially as it will now enhance our position in relation to the San Jose Accord and Caricom Agreement,” Paulwell said. He noted that despite recent increases in oil prices Jamaica was able to obtain the product at reduced prices as low as US $ 3 per barrel through the Accord.

“We believe that this new initiative will enhance that and that there will be more benefits, because we are going to become shareholders now in the company,” he added. He said that refining would be undertaken in Venezuela, Trinidad and Tobago, Cuba and Jamaica.

He noted that Petrojam has remained a “tremendous asset to the government”, in terms of its contribution to the GDP and that it was significant that,” whenever the refinery is down the figures on manufacturing also fall.”

” We are convinced now that we need to earnestly move towards upgrading of the refinery and so a submission was made to Cabinet for that to be done and Cabinet for that to be done and Cabinet has improved in principle. There is a need now to establish a technical team to develop a finance package to fund the expansion and the involvement of the private sector is one of the options we will be examining,” Paulwell said.