Paria Fuel Trading and Petrojam enter VLSFO bunker fuel supply agreement
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Trinidad and Tobago’s Paria Fuel Trading on Monday (3 February) announced it has entered into a preliminary agreement to purchase bunker fuel from Jamaica-based refiner Petrojam.
The preliminary arrangement with Petrojam encompasses a six-month contract for Very Low Sulphur Fuel Oil (VLSFO) with a maximum total volume of 540,000 barrels at an approximate cost of USD 50.2 million, determined by prevailing international pricing.
Paria received its inaugural shipment from Petrojam on 1 February, 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,” Paria said on its website.
“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.”
“Confidential negotiations are ongoing with Petrojam, and Paria 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.”
The agreement comes following Paria exploring with relevant parties in the petroleum industry the need for bunkering of petroleum products.
Paria said it has a number of international suppliers for refined products, which did not include Petrojam Limited out of 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,” the company explained.
Related: State agencies to position Trinidad and Tobago as low-carbon bunkering hub
Photo credit: Scott Graham on Unsplash
Published: 5 February, 2025
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