Paria has identified that expanding its bunkering services, considering the significant assets available to it, can become a very lucrative foreign exchange earning business. In furtherance of this, Paria has been exploring with relevant parties in the petroleum industry the need for the bunkering of petroleum products.
Paria has a number of international suppliers for refined products, which does not presently include Petrojam Limited out of Jamaica. However, an opportunity was identified for Petrojam to be a partner for 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.
These bunkering operations are a net contributor to foreign exchange earnings, and the following is the agreement with Petrojam, with respect to Very Low Sulphur Fuel oil:
- The preliminary arrangement with Petrojam encompasses a six-month contract for Very Low Sulphur Fuel Oil (VLSFO) with a maximum total volume of 540,000 barrels at an approximate cost of USD 50.2 million, determined by prevailing international pricing.
- Paria received its inaugural shipment from Petrojam on February 1st, 2025, amounting to approximately 50,000 barrels.
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.
With respect to any reference to the closure of the Pointe-a-Pierre refinery, citizens are reminded that unfortunately, that the refinery was operating at a significant loss, and had become unsustainable. This is what 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.
Confidential negotiations are ongoing with Petrojam, and Paria 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.