Jamaica has resumed fuel exports to its Caribbean neighbor, Trinidad and Tobago, marking a significant step in the country’s efforts to expand its energy exports and boost foreign exchange earnings. The deal, secured by the state-owned oil refinery Petrojam Limited through the Ministry of Energy, is valued at approximately US$90 million for 2024.
The first shipment under this agreement left Jamaica last Sunday and arrived in Trinidad and Tobago on Wednesday. Petrojam will supply around one million barrels of very low sulfur fuel oil (VLSFO) and high sulfur fuel oil (HSFO) to the twin-island republic over the course of the year.
A Groundbreaking Agreement
Petrojam’s General Manager, Telroy Morgan, highlighted the significance of the deal, emphasizing its scale and economic impact. “What is groundbreaking about this is the volume, frequency, and certainly the revenue and foreign exchange income it will generate for Petrojam and Jamaica,” he said.
Under the agreement, Petrojam will ship between 60,000 and 90,000 barrels of fuel per month to Trinidad and Tobago, primarily for refueling vessels in the country’s waters.
A Milestone for Jamaica’s Energy Sector
Daryl Vaz, Jamaica’s Minister of Energy, described the deal as a major milestone in the country’s push to expand its energy exports. “This is a moment everyone should be proud of,” Vaz stated. “Once again, Jamaica has secured a greater competitive advantage in the international economy by positioning itself as a regional leader in non-traditional exports.”
The agreement is expected to significantly boost Jamaica’s export numbers and foreign exchange earnings. In 2023, Jamaica’s exports to Trinidad and Tobago totaled US$35.91 million, while Trinidad and Tobago’s exports to Jamaica reached US$177.49 million in 2022.
Vaz also noted that Jamaica aims to remain a key supplier of fuel to Trinidad and Tobago until the country’s refinery resumes operations.
Expanding Regional Reach
General Manager Morgan revealed plans to expand fuel sales to other Caribbean countries, building on Petrojam’s previous exports to Antigua and Guyana. This move aligns with Jamaica’s broader strategy to strengthen its presence in the regional energy market.
Petrojam’s Role in Jamaica’s Energy Landscape
Petrojam operates a 36,000 barrels-per-day refinery in Jamaica, meeting all of the country’s energy needs. The refinery currently supplies up to 70% of Jamaica’s petroleum market when all products are combined.
Final Word: The fuel export deal with Trinidad and Tobago represents a significant achievement for Jamaica, showcasing the country’s growing capabilities in the energy sector. As Petrojam explores opportunities to expand its reach across the Caribbean, this agreement underscores Jamaica’s potential to become a regional leader in energy exports, driving economic growth and foreign exchange earnings.
