More than 1m b/d of Caribbean refining capacity is nearly all in jeopardy, the recent shutdown in the US Virgin Islands underlining the small prospect of a comeback.
Within the industry, the refineries are seen as industrial relics that cannot compete with US Gulf coast plants, having been built by major oil companies last century and later orphaned by Venezuelan state-owned PdV.
A number of Caribbean countries still rely on the refineries for jobs and revenue, especially during the recent COVID-19 pandemic that has decimated the previously thriving tourist industry upon which so many relied.
Whilst some are still hoping to revive conventional refining, the availability of short-haul fuel supply, coupled with weak economics has led to some countries turning to storage tanks, LNG and offshore logistics to try and generate revenue from declining brownfield sites and other fading assets.
Jamaica and the Dominican Republic are still partially operating their small refineries which estranged 49 percent partner PdV had once promised to upgrade and expand. Jamaica is searching for an investor to rejuvenate its 35,000 b/d Kingston refinery but the island may need to resign itself to converting it into a storage terminal instead.
PdV is suing for compensation for Jamaica’s February 2019 expropriation of its stake. The Jamaican refinery is currently processing around 23,500 b/d of imported crude.
Uncertainty over PdV’s share in the Dominican Republic’s 34,000 b/d Haina plant, as well as volatile market conditions, are contributing to a delay in a terminal transition and sale plan, the government says. The refinery is currently running 27,200 b/d of imported crude.
For more information visit www.state.gov/countries-areas/venezuela/
