Petrojam expansion deal to be signed next week

The Energy Minister Dr Andrew Wheatley is to head to Venezuela next week to sign a contract for the decade-long delayed upgrade of the Petrojam refinery in Kingston.

Last week, Prime Minister Andrew Holness signed a pre-agreement with Venezuelan president Nicolas Maduro.

The Energy Minister Dr Andrew Wheatley says the signing of the actual contact with his Venezuelan counterpart will allow for the engagement of the preferred contractor who is based overseas.

IN PHOTO: Wheatley

However, Wheatley would not name the contractor, saying it would be premature at this time.

The Jamaican government through Petrojam owns 51 per cent of the refinery while Venezuela owns 49 per cent.

Under the projected expansion, some US$1 billion will be spent to increase the capacity of the refinery to process 50,000 barrels of crude a day up from 35,000 barrels.

According to Wheatley, the refinery upgrade is critical to increase Petrojam’s efficiency and meet local demand for fuels.