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Petrojam and a Canadian based company, SNC Lavalin Engineers and Constructors Inc., signed an agreement today (March 28), to undertake the first phase of the refinery’s upgrade and expansion programme.
Following a competitive tendering process, SNC Lavalin was awarded the contract to carry out the Front End Engineering Design (FEED) study for the full scope of the refinery engineering design.
This work is scheduled to last for approximately 10 months, ending in early January 2007, at which time a firm definition of the upgraded facilities will be completed.
After a detailed review of the project cost at the end of the FEED study, a decision will be taken for the continuation of the upgrade project to the final stage of development and construction of the new facilities. The estimated cost for Phase one is US$200 million.
At the signing, which took place at the Ministry of Commerce, Science and Technology in Kingston, Minister Phillip Paulwell said that the occasion marked “the culmination of two years of study to select the appropriate upgrade model best suited for the Petrojam refinery and of course Jamaica’s growing demand for energy to meet our development needs”.
Chairman of Petrojam Limited, Noel daCosta pointed out that the refinery’s present production technology obliges Petrojam Limited to use expensive, light crude oil and spiked crude oil in the production mix to match the domestic demand pattern.
He outlined that the technical limitation that currently existed at the refinery restricted the long-term competitiveness of the refinery versus other competing refineries in the region, which produced a higher percentage of value ‘clean’ products.
SNC Lavalin is one of the leading groups of engineering and construction companies in the world. The company is also a global leader in the ownership of infrastructure, and in operations and maintenance services. The SNC Lavalin companies have offices across Canada and in 30 other countries around the world, and is currently working on projects in some 100 countries.