Petrojam
to Undertake Several Technology Upgrades in 2007
Petroleumworld
Trinidad & Caribbean
KINGSTON
Petroleumworldtt.com
06 25 06
Petrojam
will be undergoing several technology upgrades to
its existing processing facility in 2007, in order
to adhere to more stringent world fuel products
specifications.
In
particular, changes in processing will be made to
facilitate lower sulphur levels in diesel, heavy
fuel oils and bunker fuels. The worldwide move also
entails eliminating MTBE (a fuel additive) as an
octane enhancer by the year 2010.
The
government has mandated that this substance be phased
out by 2008 and that ethanol be used instead. This
means that Petrojam will upgrade its gasoline storage,
blending and delivery facilities in order to meet
this requirement.
Plans
are also in place to implement the first phase of
a refinery upgrade that will see the conversion
of Heavy Fuel Oil (HFO) into higher valued products,
such as vacuum gas oil for export. This will be
in keeping with global market trends, which have
resulted in many refineries making similar conversion
investments.
Details
of the initiatives are included in a Ministry Paper
tabled by the Minister of Industry, Technology,
Energy and Commerce, Phillip Paulwell, on June 20,
in the House of Representatives.
In
the meantime, top growth areas in 2005/06 included
a hike in percentage market share that was now at
1 per cent higher than that of the previous year.
Contributing to this growth, which realised net
profits of more than $290 million, was a continued
growth in market demand for Turbo Fuel, asphalt
and Aldicarb Oxime (ADO), a substance used mostly
in bauxite processing.
Furthermore,
Petrojam has been benefiting from an agreement signed
with the Greek company AGEAN Marine Petroleum SA
Limited, to supply its offshore bunkers where sea
vessels are fuelled. The Ministry Paper states that
Petrojam, in addition to supplying AGEAN with 166,000
barrels per month, obtained an unanticipated supply
agreement with bauxite companies for the supply
of ADO.
Although
Petrojam's market share has gradually increased
to its present level of 85 per cent, the document
notes that the company still faces the threat of
competition from alternative suppliers. As such,
a primary strategy for 2007 will be a consolidation
of existing business, which will include increasing
export targets, barrel per day output, especially
of marine bunker fuels.
In
keeping with this strategy, Liquefied Natural Gas
(LNG) will be introduced into the market for use
at the Jamaica Public Service Company (JPSCo) and
the bauxite and alumina companies.
Progress
was also made in the areas of financial resource
management and health, safety and environmental
compliance.
As
for financial resource management, the company saw
significant improvement in the collection of outstanding
receivables. According to the Ministry Paper, this
facilitated improved cash flow, which saw improvements
in equipment maintenance and customer service, as
a Reverse Osmosis Unit was repaired, and a Customer
Relations Unit and Logistics and Marketing Department
were established.
Marked
progress was experienced in health, safety and environmental
compliance with an upgrading of oil spill response
equipment, the acquisition of a state-of-the-art
technology to track employee's exposure to hazardous
chemicals as well as re-certification with the National
Fire Prevention Agency, International Shipping and
Port Security and Process Management Programme.
The
document points out that a number of potential challenges
will be monitored, as "the future viability
of the Petrojam refinery must be actively pursued
in order to ensure security of supply for the nation's
energy needs".
Petroleumworld Trinidad & Caribbean
25nd June 2006
Copyright
©2006 Petroleumworld. All Rights Reserved.
