Minister Young Clarifies Paria’s Deal With Petrojam Amid Misinformation

Minister of Energy and Energy Industries and Minister in the Office of the Prime Minister, Stuart Young, is clarifying reports in the public domain about the agreement between State-owned Paria Fuel Trading Company and Jamaica’s oil refiner, Petrojam Limited.

Minister Young describes the buzz about the deal on social media as mischief and misinformation being peddled by Opposition spokespersons.

Via a media release dated February 2nd, Paria Fuel Trading Company indicated it is expanding its bunkering services as a means of earning foreign exchange. Paria acknowledged that it entered into a six-month contract with Petrojam for the purchase of Very Low Sulphur Fuel Oil. The maximum total volume of 540,000 barrels is estimated to cost US$50.2 million. Paria indicated that it received the inaugural shipment of approximately 50,000 barrels from Petrojam on February 1st.

Minister Young stated, “None of this 500,000 barrels is for domestic. It is being used in our bunkering operations. We’re purchasing it. It is marine fuel that is then being sold to vessels that come into Trinidad’s waters at a profit, so it is a net foreign exchange earner, and a fraction, 500,000 barrels, compared to 17 million that Paria purchases a year. So this is complete mischief. It changes nothing in a negative manner for Trinidad and Tobago.”

Minister Young said the transaction between Paria and Petrojam is a result of two years of negotiations to promote bilateral relations between Trinidad and Tobago and Jamaica.

“Despite what bloggers may try to spin on it, and despite what others may try to spin on it, and it is a small, small part of Paria’s operations that also sends strong signals in the promotion of CARICOM. So Trinidad and Tobago, that is what this transaction is about. That is what this deal is about, and we will always try to find ways to assist our CARICOM neighbours.”

Since the closure of the Petrotrin Refinery in 2018, Paria has been purchasing marine fuel from international suppliers. Minister Young indicated the agreement with Petrojam will benefit Trinidad and Tobago, since the fuel comes at a cheaper price.

“We’re doing it at a profit, so what I can tell you, it is valuable, because as one of the areas we intend to diversify in Trinidad and Tobago is our marine traffic. We’re going to be building our marine capacity, not only in dry docking facilities, but also we want more vessels. It is this week, you all will see me launch something, fuel mixing with methanol. We have these opportunities in Trinidad, so it is part of our plan being rolled out towards diversification.”

On Sunday, Jamaica’s Prime Minister Andrew Holness, on his official Facebook page, said the supply of fuel to Trinidad and Tobago represents a strategic part of the island’s energy policy and is an avenue to earn valuable foreign exchange from non-traditional exports.

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