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JAM | Feb 3, 2025

Vaz celebrates multimillion-dollar deal between Petrojam and TT’s Paria Fuel Trading Co

Josimar Scott

Josimar Scott / Our Today

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Minister of Science, Energy, Telecommunications, and Transport Daryl Vaz, says the multimillion-dollar fuel supply agreement betweenPetrojam Limited (Jamaica)and Paria Fuel Trading Company (Trinidad and Tobago) is a major milestone in strengthening regional energy security and economic cooperation within CARICOM.

Emphasising the importance of regional collaboration, Minister Vaz noted that the agreement aligns with CARICOM’s vision for sustainability and economic resilience and is beneficial to both Jamaica and Trinidad & Tobago.

“Our collaboration on this agreement will see trade benefits for both Jamaica and our neighbours in the twin-Island republic. With the closure of the Pointe-a-Pierre refinery in Trinidad and Tobago, an opportunity was presented and as of February 1, 2025, Paria received its inaugural shipment from Petrojam, amounting to approximately 50,000 barrels,” Vaz stated.

Minister of Science and Energy, Daryl Vaz (left), and Member of Parliament for Kingston Western, Desmond McKenzie, celebrate the commissioning into service of an automotive foam fire truck, at the Petrojam refinery on Marcus Garvey Drive in Kingston, Tueday, January 23, 2024. The entity also received a state-of-the-art ambulance. (Photo: JIS)

In addition to reinforcing regional trade, the multimillion-dollar arrangement demonstrates CARICOM’s commitment to leveraging intra-regional partnerships to enhance energy security.

“Jamaica is proud to be a key partner in this agreement with Trinidad and Tobago,” Minister Vaz shared.

“We (Government of Jamaica) are committed to strengthening our partnerships that not only benefit our region but create a more sustainable and self-sufficient Caribbean. Following this agreement, we hope to see more partnerships like this among CARICOM member states, solidifying our collective energy security and economic stability,” he added.

The export deal with Trinidad and Tobago represents a major step forward in Jamaica’s efforts to diversify its exports and boost foreign exchange inflows.

Cargo ships collect marine fuel through a process called bunkering in Kingston Harbour.

Paria Fuel Trading Company, a key player in the Caribbean energy sector, buys and sells refined products for domestic and external markets. The company’s bunkering operations, which involve supplying fuel to ships, will now benefit from Petrojam’s fuel supply, further expanding trade between the two nations.

In a Trinidad and Tobago Guardian article, the company said as it expanded into bunkering, which “can become a very lucrative exchange-earning business”, it had considered a number of international suppliers for refined products, not including Petrojam Limited

“However, an opportunity was identified for Petrojam to be a partner for the bunkering of marine fuels,” Paria stated.

“It is important to note that this marine fuel is not designated for the Trinidad and Tobago market; it is exclusively for bunkering operations, with sales to international marine operators including cruise and container ships, and other international marine vessels,” it clarified further.

The preliminary tenure of the contract spans six months with a maximum total volume of 450,000 barrels at an estimated cost of US$50.2 million as “determined by prevailing international pricing”, the article noted.

“Part of the arrangement with Petrojam is to secure a market for its fuel oil while providing Paria with an opportunity to supply clean fuel to the Jamaican market. Additionally, this endeavour aims to promote CARICOM trade, though it represents a relatively modest portion in comparison to Paria’s total sales volume of approximately 17.1 million barrels per annum,” Paria explained.

While confidential negotiations are ongoing between Paria and Petrojam, the Trinbagonian company said it “will continue to seek opportunities for not only its own continued profitability, but for the benefit of the citizens of Trinidad and Tobago and the region”.

At the same time, the Government of Jamaica underscored its commitment to deepening its partnership with Trinidad and Tobago as it looks forward to further expanding regional trade and cooperation in the energy sector.

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