KINGSTON, Jamaica, CMC – The Jamaica government says the contract to provide Trinidad and Tobago with high-sulfur and very-low-sulfur fuel oil strengthens the state-owned Petrojam’s energy trade position in the region.
Science, Energy, Telecommunications, and Transport Minister Daryl Vaz told the Sectoral Debate in the House of Representatives on Tuesday that Petrojam has exported 4.5 million barrels of petroleum products since 2024, generating more than US$500 million in export earnings.
He told legislators that securing a new contract to supply Trinidad and Tobago with high-sulfur and very-low-sulfur fuel oil, which is projected to yield US$90 million, was a significant achievement. The deal will further strengthen Jamaica’s energy trade position in the region.
“Despite some challenges, Petrojam continues to contribute strongly to national revenue. The necessary steps will be taken to ensure that this continues,” he said.
In February this year, the state-owned oil refiner said it had resumed fuel exports to Trinidad and Tobago, securing a significant deal worth approximately US$90 million for 2025. Under the agreement, Petrojam will supply nearly one million barrels of both very low-sulfur fuel oil (VLSFO) and high-sulfur fuel oil (HSFO) to Port of Spain, with Petrojam exporting between 60,000 and 90,000 barrels of fuel per month to Trinidad and Tobago, primarily to refuel ships in the country’s waters.
Vaz said that between January and December last year, the Jamaica government, through Petrojam, supplied 11.1 million barrels of petroleum products to local and export markets.
“This volume was achieved through refining and importing finished petroleum products. Crude oil was sourced from key partners, including Barbados, Brazil, Colombia, and Ecuador, ensuring a diversified and stable supply chain,” he told legislators.
Vaz said that over the next three to five years, Petrojam would focus on optimizing its existing operations while advancing cleaner energy solutions.
The Energy Minister outlined key strategy elements, including producing and supplying ultra-low sulfur diesel (ULSD), expanding access to environmentally friendly fuels, and strengthening the liquefied natural gas (LNG) supply to support energy diversification.
He said the strategy also includes advancing Jamaica’s climate change agenda by implementing a comprehensive Environmental, Social, and Governance (ESG) program, driving the installation of solar systems, enhancing energy efficiency in refining operations, and increasing the production of sustainable biofuels.
Vaz said that Petrojam’s project to convert heavy fuel oil (HFO) into asphalt is progressing and is scheduled for completion in the first quarter of the 2025/26 fiscal year. This initiative involves installing new facilities to process HFO and produce asphalt for local consumption and export.
Vaz said that the initiative will increase monthly output from 4,000 barrels per day to 19,000 barrels, ensuring greater domestic availability and export potential.
“Petrojam aims to refine 8.2 million barrels of crude oil to meet domestic and export sales targets. The remaining supply will be supplemented by imported petroleum products and blend stock to ensure a stable and competitive energy market.”
Regarding oil and gas, Vaz said in March 2025, the Production Sharing Agreement with United Oil and Gas was extended to January 2028 with updated work program items for the agreement.
“The extension allows United Oil and Gas to continue de-risking the offshore prospects and their search for an exploration partner to drill an exploration well, with the drill or drop decision now due by January 2028,” he said.
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