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  • 1 year ago
Trinidad and Tobago is purchasing fuel from Jamaica, but the arrangement is mutually beneficial. So says Energy Minister Stuart Young, who saw the need to clear up what he called the "mischief" circulating, surrounding T&T's deal with Petrojam. Rynessa Cutting has more.
Transcript
00:00Energy Minister Stuart Young confirms Trinidad and Tobago is now importing
00:05fuel from Jamaica, marine fuel to be exact, and he's giving the assurance that
00:10the arrangement is mutually beneficial. Paria has been buying fuel from all over
00:16the world at a profit. We buy it and we sell it at a profit. We use some
00:20domestically. None of this 500,000 barrels is for domestic. It is being used
00:26in our bunkering operations. We're purchasing it. It is marine fuel that is
00:30then being sold to vessels that come into Trinidad's waters at a profit. So it
00:35is a net foreign exchange earner and a fraction, 500,000 barrels, compared to 17
00:43million that Paria purchases a year. So this is complete mischief. It changes
00:50nothing. The Energy Minister adds this arrangement supports the principles of
00:55As he notes, Jamaica is a close trading partner of TNT. We have a trade surplus
01:02in our trading with Jamaica of hundreds of millions of dollars in Trinidad and
01:09Tobago's fuel. The Energy Minister also sought to provide an answer to the many
01:13people who are asking how it is that Jamaica's petrol jam can turn a profit
01:19when petrochain was allegedly unable to. Running a refinery that is 38,000
01:25barrels is a lot simpler in operation and a lot commercially simpler as well
01:32than a refinery that's 175,000 barrels of oil. Remember we had reached a stage
01:36in our production and it had started in the 2010 to 15 period where
01:41unfortunately our domestic production had dipped below that point and we had
01:45to be purchasing. By the time the refinery was preserved and closed in
01:492018, we had to be importing about 100,000 barrels of oil a day. By the
01:55time it was shut down, we had to write off over $12 billion in losses.
02:01According to a statement from Paria, the arrangement is a six month contract for
02:06very low sulfur fuel oil with a maximum volume of 540,000 barrels at an
02:13approximate cost of U.S. $50 million. The inaugural shipment came in on
02:18February 1st, 2025. Renessa Cutting, TV6 News.
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