January 14, 2012 at 12:12 am #1988
New Jamaica regime seeks $1.5bn refinery expansion
30 Dec 2011 21:40 GMT
Kingston, 30 December 2011 (Argus) Jamaica’s new government will pursue a $1.5bn project to expand the island nation’s 35,000 b/d Petrojam refinery that is jointly owned by state-run energy company PCJ and Venezuelan counterpart PdV, the People’s National Party’s (PNP) economic program said.
But at least for now, there is little sign that PdV shares the PNP’s enthusiasm.The PNP won yesterday’s general election by taking 41 spots in the 63-seat parliament, with the others going to the Jamaica Labour Party that formed the government for the past four years, the electoral office said today. PNP leader Portia Simpson-Miller will replace Bruce Golding as prime minister.
The re-engineering and retrofitting of the Petrojam oil refinery at an approximate cost of some $ 1.5bn will be a priority, the PNP said in stating its plans for the energy sector.
PdV owns 49pc of Petrojam, and has been discussing with PCJ a 4-year old project to expand the plant’s capacity to 55,000b/d. The refinery, commissioned 47 years ago, is the only one on the island.
The front-end designing of the expansion was done Canadian engineers SNC Lavalin three years ago.
But PdV and PCJ have failed to conclude a transfer of shares that would lift PdV’s interest to at least 51pc, which would allow financing for the expansion to be found without a government guarantee that Jamaica cannot provide, Golding said in April.
The new administration will leverage its relationship with PdV and create a joint venture partnership to access equity and debt financing, preventing any need for the Jamaican government to provide a sovereign debt guarantee, the PNP statement said. A revamped refinery will also enable provision of cleaner diesel fuel at a much lower cost. It will also allow for the separation of petroleum coke, the cheapest fuel for electricity generation.
Petrojam currently processes Venezuelan crude, imported under Caracas’ PetroCaribe energy facility, to produce LPG, unleaded gasoline, kerosene, jet fuel, diesel, heavy fuel oil and asphalt.
The expansion would allow the production of a wider range of refined products, and provide petroleum coke for a 120MW power station to be managed by the island’s biggest power producer JPSCo, energy ministry officials said.
The increase that Jamaica was seeking in PdV’s stake in Petrojam is part of a Jamaican government agreement with the IMF to divest several state assets as one of the conditions for credits of $1.3bn, the IMF said.
As PdV makes new equity investments in the refinery project, the Jamaican government’s equity participation will continue to be reduced accordingly, the IMF said.
But heavily indebted PdV was delaying the expansion of Petrojam and concentrating on other refinery projects in the Caribbean, Central and South America and Asia, Jamaican energy ministry officials said in October.
A list of refinery projects announced in October by Venezuelan energy minister and PdV president Rafael Ramirez did not include Petrojam, the officials said.
January 14, 2012 at 12:17 am #4764
Here is news update on Jamacia/PDVSA expansion & coker add for Jamacia’s only refinery.
This project has been in Planning & FEED stage since 2001. If there is coker it has to be out for Coker Tech license now with this update & based on new funds from China/Russia & Brazil.
It was ontrack for installation in 2008 with 2010 target online date till got delayed after they replaced Vac tower in Apr 2008. I heard FW did lot work but still hasnt got license, since it is PDVSA JV they have do coker & other upgrade options are too expensive.
They definitely delayed original target day. They may have switched to non-coker alternate but those are always more costly and seldom pass FEED study cost hurdles given all PDVSA projects in works.
I just found my background files on it & as Argus news item said Petrojam was looking at adding coker back 2006-2008. The Phase I was Visbreaker that was to go in when replaced old Vac unit in Apr 2008 and Phase II was coker due online in 2010 but this was delayed (or canceled).
So its still possible but think its outsider given all the other PdV projects already announced …… despite all Chinese & Russian money funding lot new upgraders & refinery expansions. Also think this one might not have coker – one news items saw that they were looking at one alternate Visbreaker or new Slurry cracker for bottoms conversion here at Jamaica.
Keep me informed if anyone hears update news or otherwise.
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