Jamaica’s oil refinery, Petrojam is to be upgraded at a cost of US$160 million, in order to increase output to 50,000 barrels per day.

Making his presentation in the 2004/05 Sectoral Debate in the House yesterday (May 12), Commerce, Science and Technology Minister, Phillip Paulwell said that an efficient oil refinery was “of central importance to addressing Jamaica’s oil needs”.

He pointed out that the current refinery design yielded approximately 45 per cent heavy fuel oil and 55 per cent clean products, including liquid petroleum gas (LPG), turbo, gasoline and diesel. “Consequently, there is a deficit of high value products such as LPG and gasoline, which now have to be imported,” the Minister remarked.

Mr. Paulwell pointed out that upgrading the refinery would enable it to supply the full range of finished petroleum products to the local market, adding that it would also be in a position to take up anticipated export opportunities.

Citing another reason for upgrading the facility, Minister Paulwell said that Petrojam in its present state, would not be able to meet upcoming changes in global product specification, which called for the production of low sulphur gasoline and diesel. “The refinery uses MTBE as an octane enhancer for gasoline and there is now an international thrust to phase out MTBE by 2007 because of environmental considerations,” he said.

Mr. Paulwell said that it was recommended that the upgrading exercise should be pursued through a lead investor/private financing type arrangement under a Build, Own and Operate (BOO) Scheme.