Jamaica is progressing with the long-planned and earlier delayed expansion and modernization of the Jamaican-Venezuelan joint venture Petrojam Ltd.’s 36,000-b/d hydroskimming refinery in Kingston, Jamaica (OGJ Online, Apr. 26, 2018).
A technical team comprised of members from the Petroleum Corp. of Jamaica (PCJ) and Petrojam are meeting with previously engaged but as-yet-to-be identified engineering, procurement, and construction contractors for expansion of the state-owned refinery, Andrew Wheatley, Jamaica’s minister of science, energy, and technology, told Jamaica Information Service (JIS).
Providing an update on the status of the expansion to Jamaican legislators on May 29, Wheatley said staff members are working feverishly to advance the first phase of the modernization, which involves installation of a vacuum distillation unit (VDU), according to JIS.
“The money is in place, and the government has made an allocation for this year for us to proceed with the VDU project,” Wheatly said.
The VDU comes as part of the refinery’s plan to produce low-sulfur fuel for the bunkering industry that complies with pending sulfur specifications designed to reduce environmental pollution from the International Maritime Organization (IMO) to take effect in January 2020 (OGJ, Apr. 2, 2018, p. 60).
The project aligns with Jamaica’s intention to be able to supply IMO-compliant fuels to cruise and cargo ships that use the island as a transshipment point.
Wheatly previously confirmed $100 million is now earmarked for Phase 1 of the refinery upgrade by PCJ, which holds 51% interest in the refinery alongside Venezuela’s state-run Petroleos de Venezuela SA (PDVSA) 49%.
In April, Wheatley said Jamaica was in the process of trying to reacquire PDVSA subsidiary PDV Caribe SA’s interest in Petrojam as the parties evaluate potential tax implications related to the reacquisition.
Timeframes for the proposed reacquisition and start of construction on the refinery’s upgrade have yet to be detailed.
Contact Robert Brelsford at [email protected].
