PETROJAM LIMITED, Jamaica’s State-owned oil refiner, has resumed fuel exports to Trinidad and Tobago, securing a lucrative deal worth around US$90 million ($14 billion) in 2025 as the Caribbean nation seeks to expand its energy exports.

Under the agreement, Petrojam will supply nearly one million barrels of very low-sulfur fuel oil (VLSFO) and high-sulfur fuel oil (HSFO) to Trinidad and Tobago, General Manager Telroy Morgan said.

“What is the groundbreaking aspect of this is the volume, it’s the frequency, and certainly, the sort of revenue and foreign exchange income to the company and Jamaica. That is very groundbreaking, in this particular case,” Morgan added.

Based on the agreement, Petrojam will ship between 60,000 and 90,000 barrels of the fuel per month to the two-island republic for the purposes of refuelling ships in Trinidad and Tobago waters. The first shipment left Jamaica last Sunday and was received on Wednesday.

Petrojam’s export deal with Trinidad and Tobago marks a significant milestone in Jamaica’s push to expand its energy exports and boost foreign exchange earnings, Minister of Science, Energy, Telecommunication, and Transport (MSETT) Daryl Vaz said.

“This is a moment all of us should be proud of,” Vaz said in a statement. “Once again, Jamaica has secured greater competitive advantage in the global economy by ideally positioning itself as a regional leader when it comes to non-traditional exports.”

The deal is expected to provide a significant boost to Jamaica’s export numbers and foreign exchange earnings, Vaz added. Jamaica’s exports to Trinidad and Tobago totalled US$35.91 million in 2023, while Trinidad and Tobago’s exports to Jamaica reached US$177.49 million in 2022.

“And so for us, as an entity, whilst that is their near-term plan, our plan is to ensure that we remain the supplier of Trinidad and Tobago with these fuels — at least until their refinery comes back on stream,” he noted.

Morgan also said he is considering expansion of the fuel sales to other Caribbean countries. Petrojam previously shipped petroleum products to Guyana and Antigua.

Petrojam, with the help of the ministries of energy, foreign affairs, and commerce, sealed the deal as part of its pivot following the introduction of liquefied natural gas (LNG) in Jamaica for generating electricity, which led to the loss of its market for heavy fuel oil.

“It would have displaced around three million barrels for us so that’s a significant hit, per se, in terms of our off take,” Morgan said. The volumes replaced by LNG represent about 25 per cent of its output. Morgan added that the sales to Trinidad and Tobago will put a “significant dent” in that lost volume, while new markets are being scouted to take more of the fuel, which is more environmentally friendly than what was available before.

VLSFO plays a crucial role in reducing environmental impacts within the maritime industry. It complies with stringent emissions standards under the International Convention for the Prevention of Pollution from Ships (MARPOL). Its lower-sulphur oxide emissions contribute to reduced air pollution and fewer respiratory issues globally. Petrojam’s commitment to health, safety, and environmental sustainability is reflected in its production of this cleaner fuel.

Morgan said the pivot for new markets in the region is part of Petrojam’s plan to become a regional supplier and a multi-energy innovator.

“We’re looking to serve not just Jamaica, but the region, and not just with traditional petroleum-based fuels,” Morgan said, who took the helm 18 months ago. “Our export deal is just the start of our plans to diversify our energy portfolio beyond just the natural petroleum products.”

Morgan declined to elaborate on the company’s plans, citing ongoing development work.

Petrojam produces and sells a wide range of energy products, including cooking gas, gasoline, jet fuel, diesel, heavy fuel oils and bitumen for road construction.

Petrojam’s export deal with Trinidad and Tobago is a notable irony, given Jamaica’s status as a non-oil-producing nation, Morgan noted.

“Absolutely ironic,” Morgan said. “But it just goes to show the dynamics of the market and what happens.”

Petrojam is also exploring other export opportunities, including bitumen for road construction, which Morgan described as a “very, very important” product.

“We produce perhaps one of the best-quality bitumen in this side of the world,” Morgan said. “And so the demand has been growing extensively beyond our own local base.”

Despite the presence of Trinidad and Tobago’s Pitch Lake, a major source of asphalt, Petrojam is still able to export bitumen to the country.

“We are exporting to Trinidad, which has Pitch Lake, but we are exporting to them,” Morgan said. “So it makes it quite interesting.”

On the issue of competition, Morgan said Petrojam remains focused on delivering high-quality products and services to its customers.

“For us, we remain focused on the value we bring to the Jamaican people, and that especially around producing safely, producing and having products in the market of the highest quality and best value, and price to our customers,” Morgan said.

Petrojam operates a 36,000 barrels-per-day refinery in Kingston, supplying Jamaica’s energy requirements. It currently supplies up to 70 per cent of the petroleum market when all products are combined.