Caribbean aspires to reinvent downstream relics

Spanish Market: Crude oil, Oil products
08/07/21

More than 1mn b/d of Caribbean refining capacity is nearly all on ice, with a recent shutdown in the US Virgin Islands underscoring dim prospects for a comeback.

Built by major oil companies last century and later orphaned by Venezuelan state-owned PdV, the refineries are seen as industrial relics that cannot compete with US Gulf coast plants.

Despite weak economics and ample availability of short-haul fuel supply, a few Caribbean countries still rely on the refineries for jobs and revenue, more so during the Covid-19 pandemic that devastated tourism. Some are turning to storage tanks, offshore logistics and LNG to try to monetize the aging assets and languishing brownfield sites. Others are still hoping to revive conventional refining.

Trinidad and Tobago, for one, has re-launched a tender for its 165,000 b/d Pointe-a-Pierre refinery following the late 2020 collapse of a sale agreement with a labor union-owned company. The deadline for proposals is 23 July. Defunct state-owned Petrotrin mothballed the refinery in late 2018.

Dutch Caribbean islands Curacao and Aruba are courting investors for assets that were once part of PdV's nearshore logistical network. A Dutch-led consortium is the latest candidate to restart the 335,000 b/d Isla plant that PdV used to run. Trading company Mercuria is leasing storage at the Bullen Bay terminal in the meantime.

Aruba's 235,000 b/d San Nicolas refinery, dismantled by Valero in 2012, was supposed to have been refurbished by PdV's US refining arm Citgo before the $1.1bn project derailed in 2019. US firm Eagle LNG plans to install a terminal there. Aruba is hoping a US consortium will rebuild a modern refinery on the site as well. The projects are on hold while a new government is formed following June parliamentary elections.

Jamaica and the Dominican Republic are still partially operating their small refineries which estranged 49pc partner PdV had once promised to upgrade and expand. Jamaica wants an investor to rejuvenate its 35,000 b/d Kingston refinery but the island may need to settle for 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.

In May the US Environmental Protection Agency (EPA) ordered the recently revived 200,000 b/d Limetree Bay refinery on the US Virgins Islands to close after a coker-related accident. A restart is uncertain. The refinery, a 525,000 b/d regional behemoth in its day, was previously owned by Hovensa, a joint venture between PdV and US independent Hess.

Off the Caribbean downstream radar is Cuba, where operational data on the state-owned 65,000 b/d Cienfuegos refinery is sketchy. Feedstock is limited by a shortage of hard currency and US sanctions on its traditional supplier PdV, but sporadic crude imports include an 830,000 bl cargo of Algerian Saharan blend in June.

By Patricia Garip and Canute James

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

06/01/25

Canadian prime minister Trudeau to resign

Calgary, 6 January (Argus) — Canadian prime minister Justin Trudeau said he will resign as soon as his Liberal Party selects a new leader to run in general elections expected later this year. Calls for Trudeau to resign have been growing for months but became too much to ignore as the Liberals continued to fall further behind the Conservative Party and its leader Pierre Poilievre in polling. Recent polls indicate the centre-right Conservatives would win a majority of seats in the House of Commons if an election were held today. "If I'm having to fight internal battles, I can't be the best option in that election," Trudeau said in Ottawa this morning. Parliament was set to return from a break on 27 January, at which time Conservatives were expected to attempt to trigger an election by way of a no-confidence vote. Canada's governor general — at Trudeau's request — extended the break until 24 March. That break will buy the Liberals time to find a new leader but it will be a tall order for any successor to both unite the party and also connect with Canadians on short notice before an expected spring election. "There will be confidence votes in March," said Trudeau, whose minority government has been propped up by the New Democratic Party (NDP). The NDP has helped Trudeau survive no-confidence votes in recent months, but on 20 December vowed that it would also bring the government down when it returned to session. Trudeau was elected as a member of parliament (MP) in 2008, leader of the Liberal Party in 2013, and has been prime minister since 2015 after defeating the then Stephen Harper-led Conservatives. There is no obvious replacement for Trudeau after deputy prime minister and finance minister Chrystia Freeland resigned last month , citing "costly political gimmicks," unrestrained spending and being at odds over the approach to the "grave challenge" of aggressive US nationalism. US president-elect Donald Trump has threatened a 25pc tariff on all imports from Canada and Mexico unless they tighten borders to crack down on drug trafficking and illegal migration into the US. Trudeau's plan to resign does not change the Conservative party's plans to call for new elections, Poilievre said today. "Every Liberal MP in power today and every potential leadership contender fighting for the top job helped Justin Trudeau break the country over the last nine years," he said. If elected, Poilievre plans to cut a number of environmental programs championed by the Liberals, including the carbon tax. The Conservatives support the continued use of oil and gas, exploration for hydrocarbons, and pipeline construction. The next federal election must occur on or before 25 October this year, according to the electoral calendar. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German fuel prices rise with new GHG quota, CO2 levy

06/01/25

German fuel prices rise with new GHG quota, CO2 levy

Hamburg, 6 January (Argus) — Prices for road fuels and heating oil in Germany rose at the start of the year as a result of an increased greenhouse gas (GHG) quota and CO2 levy, as well as higher Ice gasoil futures. Many filling stations are replenishing stocks, and low temperatures have led to more heating oil orders. German wholesale prices for heating oil, diesel, and gasoline increased because of a 1.25 percentage point increase in the GHG quota and a €10/t CO2 increase in the CO2 levy, which came in on 1 January. The increase in heating oil was €4.94/100l, in diesel €6.79/100l, and in gasoline €5.36/100l. Heating oil is excluded from Germany's GHG mandate. This price rise roughly matches Argus ' estimates from December. But higher Ice gasoil futures since the turn of the year led to a bigger price increase than originally expected. Lower gasoil imports from east of Suez into the Amsterdam-Rotterdam-Antwerp (ARA) hub in December are lending support to futures. Heating oil consumer stocks are on average 57pc full nationwide, but more was ordered in the first week of the new year than many traders had expected. Traders reported deal volumes of nearly 13,000m³ on January 2, the highest for a day since 15 December. One reason for this is the cold weather that has hit many regions in Germany, another is the price increase at the beginning of the year, which has boosted buying interest. Many market sources said diesel demand will only begin to pick up from the second half of January. Many wholesalers had sufficiently stocked up in December in expectation of the increased GHG quota and CO2 levy. Diesel stocks of commercial consumers were at a 12-month high of just under 59pc on 1 January, according to Argus MDX data. But stockbuilding towards the end of 2024 does not seem to have had a dampening effect on demand from filling stations. These are being resupplied since 2 January, and daily diesel amounts reported to Argus on that day were the highest since 19 December. Ship owners on the Rhine river said business will not fully resume until the second week of the year, and they expect January to remain quiet because of wholesalers' high diesel stocks. Importers' anticipated restocking with biodiesel will also not initially lead to price pressure, as the Rhine is deep enough for transit. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia’s Pertamina launches B40 bunker prices

06/01/25

Indonesia’s Pertamina launches B40 bunker prices

Singapore, 6 January (Argus) — Indonesia's state-owned refiner Pertamina issued posted bunker prices for 40pc biodiesel blend (B40) for the first time on 6 January, in line with the country's mandate . Pertamina issued B40 prices today for five locations — Jakarta, Benoa, Surabaya, Balikpapan and Batam. They are effective for the first two weeks of January. The prices issued by Pertamina are for a blend of 500ppm (0.05pc) sulphur marine gasoil (MGO) and palm oil-based biodiesel . Prices were posted at $1,103/t for the port of Jakarta, $1,085/t for Benoa, $1,049/t for Surabaya, $1,087/t for Balikpapan and $910/t for Batam. Indonesia's biodiesel sector has been preparing for the transition from B35 to B40 on 1 January . Biodiesel producers have been given until the end of February to make the transition to B40 blends for all sectors. Pertamina produces three kinds of MGO at its refineries, two grades with 500ppm sulphur content and a third grade with 50ppm. By Mahua Chakravarty Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US crude output at record 13.46mn b/d in Oct: EIA

03/01/25

US crude output at record 13.46mn b/d in Oct: EIA

Calgary, 3 January (Argus) — US crude production rose to a record 13.46mn b/d in October on sustained strength in Texas and New Mexico, according to the EIA's latest Petroleum Supply Monthly report. Output rose from 13.2mn b/d in September and 13.15mn b/d in October 2023, and pushed past the previous record of 13.36mn b/d set in August. Texas pumped a record 5.86mn b/d, up from 5.8mn b/d in September and 5.57mn b/d a year earlier, while New Mexico produced 2.08mn b/d, down slightly from record highs in August and September, but up from 1.8mn b/d in October 2023. Gulf of Mexico output rebounded to 1.85mn b/d from a hurricane-affected 1.57mn b/d in September, but was down from 1.94mn b/d a year earlier. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Congress begins with focus on energy, taxes

03/01/25

US Congress begins with focus on energy, taxes

Some Republicans worry that their razor-thin House majority could soon see their caucus fractured, writes Chris Knight Washington, 3 January (Argus) — The new Republican majority in US Congress has set its sights on passing legislation to grow energy production, unwind climate policies and cut trillions of dollars in taxes, but doing so will require the party to overcome its history of infighting. That disharmony was on display last month, when Republicans in the House of Representatives nearly forced a government shutdown by scuttling a spending deal negotiated by their own leaders. Similar dynamics have been at play for the past two years, as rifts over how to govern made it difficult for House Republican leaders to use a tiny majority to extract policy concessions during negotiations. The first test of party unity in the 119th Congress — sworn in on 3 January — will come as House Republicans vote on whether to re-elect Mike Johnson as speaker with an even smaller majority than last year. Johnson can only afford to lose a handful of votes, assuming all Democrats vote against him, before Republicans risk a repeat of 2023, when far-right members ousted the last speaker but could not agree on a replacement for weeks. A lengthy voting impasse could delay the 6 January certification of the election victory of president-elect Donald Trump, who this week endorsed Johnson. Trump campaigned on passing legislation to allow industry to "drill, baby, drill" by increasing federal oil and gas lease sales, removing regulations and unwinding parts of outgoing president Joe Biden's signature Inflation Reduction Act (IRA). Among the options are rescinding a fee on methane emissions that started at $900/t, and requiring more oil and gas lease sales in the US Gulf of Mexico. On taxes, Trump has proposed extending $4 trillion in cuts due to expire at the end of 2025, in addition to cutting corporate rates to as low as 15pc from 20pc, rescinding clean energy credits, and putting a 20pc tariff on all imports. Other items on Congress' to-do list include passing legislation to fund the government and raising the statutory limit on federal debt. Republicans also say they want to pass a bill to expedite federal permitting, after a bipartisan effort to do so failed to advance in December. Learning to two-step Republican leaders have floated a two-step plan to pass Trump's legislative agenda that would use "budget reconciliation" — a legislative manoeuvre that will prevent a Democratic filibuster in the Senate, but which limits the bill to provisions that will affect the federal budget. Senate majority leader John Thune, a Republican from Texas, has suggested packaging immigration, border security and energy policy into a first budget bill that would pass early this year. Republicans would then have more time to debate a separate — and far more complex — budget bill that would focus on taxes and spending. But some Republicans, mindful of a slim 220-215 House majority that will temporarily shrink because of upcoming vacancies, worry the two-part strategy could fracture the caucus. Republicans have yet to decide the changes to the IRA, which includes hundreds of billions of dollars of tax credits for wind, solar, electric vehicles, battery manufacturing, carbon capture and clean hydrogen. A group of 18 House Republicans last year said they opposed a "full repeal" of the law, which disproportionately benefits districts represented by Republicans. Republicans plan to use their expanded influence to push changes at all levels of government and the work it supports. Incoming Republican chairman of the Senate energy committee John Barrasso has issued a report urging OECD energy watchdog the IEA to revive the inclusion of a "business-as-usual" reference case in its annual World Energy Outlook. Barrasso says the IEA has lost its focus on energy security and instead become a "cheerleader" for the energy transition. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more