Petrojam targets old rum stores for refinery expansion
Published:Friday | February 17, 2012 | 12:00 AM
Petrojam Limited is in negotiations with Kingston Restoration Company to acquire a three-acre property known as the 'old rum stores', the oil refinery's strategic planning manager Andrea Reid has confirmed.
"The acquisition of this property by Petrojam is in relation to the refinery's expansion plans," Reid told the Financial Gleaner.
The projected cost of retrofitting the site, located opposite the Jamaica Livestock Association on Marcus Garvey Drive, was not disclosed.
The lot houses three buildings of 16,431 square feet, 20,267 square feet and 16,408 square feet, plus a ruin.
"We are currently in the final stages of the formal procurement approval process and until that has been completed, we prefer not to disclose details of the project," Reid said.
The refinery, which is also located on Marcus Garvey Drive, is owned 51 per cent by Jamaica and 49 per cent by Venezuela.
Jamaica has spent about J$4 billion on the early stages of the refinery expansion, but the project has stalled for lack of funds and a failure to secure a deal with Venezuela for its oil company PDVSA to acquire majority ownership of Petrojam.
The new Government has recommitted to the project and Finance Minister Dr Peter Phillips said revival of the more than US$1-billion expansion plans were being prioritised.
Reid declined to say how the rum stores would fit into the expansion programme, under which the plant's refining capacity is expected to grow from 35,000 barrels per day to 50,000 barrels.