Paria Seeks to Expand Bunkering Services with Petrojam Partnership
Paria Schedules Partnership with Petrojam for Bunkering Operations
PORT OF SPAIN, Trinidad, CMC – The state-owned Paria Fuel Trading Company Limited (Paria) says it has agreed with Petrojam Limited in Jamaica as it seeks to expand its bunkering services.
In a statement, Paria said that it has identified expanding its bunkering services, considering the significant assets available to it,” can become a very lucrative exchange-earning business.
Exploring Opportunities in Bunkering
“In furtherance of this, Paria has been exploring with relevant parties in the petroleum industry the need for the bunkering of petroleum products,” it said, noting that it has several international suppliers for refined products, which does not presently include Petrojam Limited in Jamaica.
“However, an opportunity was identified for Petrojam to partner in the bunkering of marine fuels. 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”.
Bunkering Operations Contribute to Foreign Exchange
Paris said the bunkering operations are a net contributor to foreign exchange. According to its agreement with Petrojam for very low-sulfur fuel oil, the preliminary arrangement encompasses a six-month contract with a maximum total volume of 450,000 barrels at an estimated cost of US$50.2 million “determined by prevailing international pricing.”
First Shipment Received
In addition, Paria said it received its inaugural shipment from Petrojam over the last weekend, amounting to approximately 50,000 barrels.
Partnership Goals
“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 endeavor aims to promote CARICOM trade, though it represents a relatively modest portion compared to Paria’s total sales volume of approximately 17.1 million barrels per annum”.
Clarification on Refinery Closure
Paria said that regarding any reference to the closure of the Point-a-Pierre refinery here, “citizens are reminded that, unfortunately, the refinery was operating at a significant loss and had become unsustainable.
“This led to the restructuring of PETROTRIN and the creation of Heritage Petroleum Company Limited and Paria, both of which now operate profitably and are continuously seeking ways to grow their respective business.”
Ongoing Negotiations
Paria said confidential negotiations are ongoing with Petrojam and that it “will continue to seek opportunities for not only its continued profitability but for the benefit of the citizens of Trinidad and Tobago and the region.”
Conclusion
Paria’s partnership with Petrojam is a significant step in the company’s efforts to expand its bunkering services and contribute to foreign exchange earnings. The agreement is expected to promote CARICOM trade and provide a new market for Petrojam’s fuel oil.
FAQs
* What is the purpose of Paria’s partnership with Petrojam?
– The partnership aims to expand Paria’s bunkering services and contribute to foreign exchange earnings.
* What is the scope of the partnership?
– The partnership includes a six-month contract with a maximum total volume of 450,000 barrels at an estimated cost of US$50.2 million.
* What are the goals of the partnership?
– The partnership aims to secure a market for Petrojam’s fuel oil, provide Paria with an opportunity to supply clean fuel to the Jamaican market, and promote CARICOM trade.
* What is the current situation regarding the Point-a-Pierre refinery?
– The refinery was operating at a significant loss and had become unsustainable, leading to its restructuring and the creation of Heritage Petroleum Company Limited and Paria.