PORT OF SPAIN, Trinidad, (CMC) – Trinidad and Tobago’s state-owned Paria Fuel Trading Company Limited (Paria) says it has entered into an agreement with Petrojam Limited as it seeks to expand its bunkering services.

In a statement, Paria said that it has identified that expanding its bunkering services, considering the significant assets available to it, can become a very lucrative exchange earning business.

“In furtherance of this, Paria has been exploring with relevant parties in the petroleum industry the need for the bunkering of petroleum products,” it said, noting that it has a number of international suppliers for refined products, which does not presently include Petrojam Limited in Jamaica.

“However, an opportunity was identified for Petrojam to be a partner for the bunkering of marine fuels. It is important to note that this marine fuel is not designated for the Trinidad and Tobago market, it is exclusively for bunkering operations, with sales to international marine operators including cruise and container ships, and other international marine vessels”.

Paris said the bunkering operations are a net contributor to foreign exchange and according to its agreement with Petrojam with very low Sulphur fuel oil, the preliminary arrangement encompasses a six month contract with a maximum total volume of 450,000 barrels at an estimated cost of US$50.2 million “determined by prevailing international pricing”.

In addition, Paria said it received its inaugural shipment from Petrojam over the last weekend, amounting to approximately 50,000 barrels.

“Part of the arrangement with Petrojam is to secure a market for its fuel oil while providing Paria with an opportunity to supply clean fuel to the Jamaican market. Additionally, this endeavour aims to promote CARICOM trade, though it represents a relatively modest portion in comparison to Paria’s total sales volume of approximately 17.1 million barrels per annum”.

Paria said with respect to any reference to the closure of the Point-a-Pierre refinery here, “citizens are reminded that unfortunately the refinery was operating at a significant loss, and had become unsustainable.

“This is what led to the restructuring of PETROTRIN and the creation of Heritage Petroleum Company Limited and Paria, both of which now operate profitably, and are continuously seeking ways to grow their respective business”.

Paria said confidential negotiations are ongoing with Petrojam and that it “will continue to seek opportunities for not only its own continued profitability, but for the benefit of the citizens of Trinidad and Tobago and the region”.