Venezuela To Build Petroleum Storage On St. Kitts

Basseterre, St. Kitts -Nevis
December 10, 2007 (CUOPM)

St. Kitts and Nevis Prime Minister Hon. Dr. Denzil L. Douglas says Venezuela’s state-owned energy company,  Petroleos de Venezuela SA (PDVSA) is to construct a storage tank farm close to the C.A. Paul Southwell Industrial Park.

The project will begin in the first quarter of 2008 and will have a capacity of 34,200 barrels.

Prime Minister Douglas said the storage tank farm will consist of Two (2) 12,000 bbl HFO tanks (Heavy Fuel Oil); One (1) 5,000 bbl Jet Aviation Fuel Tank; Two (2) 5,000 bbl Gasoline Tanks; One (1) 2,140 bbl LPG Tank and One (1) 5,000 bbl Water Tank.

Dr. Douglas said a 12,000 bbl Diesel Tank will also be constructed at the Needsmust Power Station.

He disclosed that bids have already been received for this project and by the end of this month the contract will be awarded to commence work in the area to construct the storage facilities.

Prime Minister Douglas also disclosed that a local St.Kitts company, PDV (St. Kitts-Nevis Ltd) has already been incorporated and the Joint Venture Company is now in the process of establishing offices in Basseterre.

“This office will be fully staffed to take charge of the business of fuel importation and distribution logistics,” he told the ceremony held to mark the first shipment of 7,000 barrels of diesel under the Petro Caribe Agreement.

Dr. Douglas says his St. Kitts-Nevis Labour Government has realised that the ever-increasing price of oil on the world market affects the movement of the surcharge and “your government being the caring government that it is will continue to monitor the situation with a view to bringing some relief shortly.”

“The receipt of Petro Caribe Fuel however, does not make the fuel any cheaper but it provides flexible financing mechanisms and compensations to enable the government to develop a variety of social programmes that would improve the quality of life of our people particularly the elderly and single household families,” he said.

Freight expenses arising from these operations will be charged at cost price, thus representing additional savings from this agreement.  Furthermore, there is a guaranteed direct trade relationship without intermediaries in the supply process, an arrangement that shall assist in generating additional savings, not to mention the construction of the storage facilities and terminals that will be owned and controlled by the government upon completion.

Prime Minister Douglas advised that the twin-island Federation will be benefiting enormously from this particular arrangement as “we would now have money saved although to a large extent it is a long term loan but money would be made available that would be put in the financing of social development programs which our people must benefit from.”

“St.Kitts and Nevis uses huge quantities of diesel in its generating division and the overall operation of projects.  The increasing cost of crude oil on the world market and the gradual erosion of our revenue generating bases resulting from globalization and trade liberalization have forced small islands like St.Kitts and Nevis to take full advantage of treaties, conventions and protocols aimed at fostering conditions to improve the quality of life of our people,” he said.

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