Current supply arrangements remain intact whilst pursuing additional suppliers

Staying true to its mandate to reliably supply domestic energy needs, Jamaica’s sole oil refinery, Petrojam Limited is assuring nationals that all efforts are being made to ensure uninterrupted fuel supply during the Russia-Ukraine war.

Winston Watson, Petrojam’s general manager, gave the assurance stated that current supply arrangements remain intact and that the refinery is actively pursuing additional suppliers.

In a recent press release Watson asserted that, “despite the global vagaries with supply and demand of crude and finished products during this extremely challenging period, Petrojam is making every effort to ensure fuel supply to the country is available at the most competitive prices.”

“During these types of geopolitical events, smaller countries such as Jamaica may experience greater challenges in sourcing both crude oil and refined products.  However, we are sparing no efforts to ensure that we have access to reliable crude and product supply,” added the Petrojam general manager.

Efforts at securing oil contracts

He informed that a team from the refinery is currently in the United States attending the annual American Fuel Petrochemical Manufacturers conference to meet with oil traders and other national oil companies in an effort to secure additional options/contracts for both crude oil and refined products.

According to Watson, “Currently, the refinery sources crude from Petrobas in Brazil and from Colombia and Ecuador. Small quantities of crude are also purchased from Barbados. However, since this Ukraine crisis, the refinery has reached out to other countries in the region including Guyana and Argentina, to secure additional options for crude oil, and is currently in dialogue with PetroEcuador (Ecuador) and Ecopetrol (Colombia) to establish term supply agreements.”

Petrojam is also in dialogue with the Nigerian National Petroleum Corporation (NNPC) with a view to secure a term arrangement to source approximately four million barrels of crude oil per annum. The refinery also has existing term contracts in place with current and alternative suppliers of refined products.

Petrojam’s storage capabilities

Commenting on the refinery’s storage capabilities, Watson said that Petrojam has additional crude oil storage in St. Eustatius, where up to one million barrels of crude oil can be stored and then shipped to Petrojam in required quantities for processing. Alternative storage arrangements are also being explored.

Citing the importance of Petrojam Limited to Jamaica’s energy security, Watson highlighted that global events such as these underscore the benefit of having a refinery, especially as an island nation. “In times of conflict or natural disasters, crude is always easier to source than finished products. Petrojam’s refining capabilities gives us an advantage in meeting local energy demand,” explained Watson.

Energy and Technology Minister Daryl Vaz recently updated Cabinet and the National Partnership Council on Petrojam’s efforts to ensure uninterrupted fuel supply.

Petrojam Limited commemorates 40 years of service to Jamaica this year. The company, which commenced operations in 1982, following the Government’s purchase of the refinery from ESSO, reliably supplies the full range of petroleum products to the market, through a mix of refining and importation.