CARIBBEAN ENERGY UPDATE

ISSUE 2019

MAR/APR

CARIBBEAN ENERGY UPDATE A Publication of the Caribbean Energy Information System on Petroleum and Renewable Energy ©CEIS 2019

+1-876-927-1779 www.src.gov.jm www.cipore.org www.ceis-caribenergy.org

Contents

Page

PETROLEUM UPDATE • Mini-Refineries For Emerging Economies

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• Global Oil Storage Markets

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• Petroleum Energy Highlights

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• Average Retail Prices

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• WTI Crude Oil Prices

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CARIBBEAN

ENERGY MINISTERS’ BULLETIN • BREAKTHROUGH TECHNOLOGY

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Green Industrial Revolution Record Solar Hydrogen Production

• Country Happenings

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Monsterrat: 250 KW Solar PV project Dominica: World Bank supports Geothermal project Upcoming Energy Events

PETROLEUM 3

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Energy

Mini-Refineries

Mini Refineries for Emerging Economies Modular mini refineries are best utilized in emerging economies and in remote locations where gasoline, diesel and fuel oil are needed.

The local crude oil is normally your lowest cost feed stock because the transportation costs are minimized.Mini refineries with heavy crudes and low API gravity produce more fuel oil and less naphtha and diesel. Light crudes with high API gravity produce less fuel oil and more naphtha and diesel.

22.3째 and 31.1째 (i.e., 870 to 920 kg/m3). Heavy crude oil has an API gravity below 22.3째 (i.e., 920 to 1000 kg/m3). Extra heavy crude oil has an API

Additionally, sulfur content determines refinery cost being as low sulfur crudes may not require hydro-treaters. Crude oil is classified as light, medium, or heavy grade according to its measured API gravity.Light crude oil has an API gravity higher than 31.1째 (i.e., less than 870 kg/m3).

Medium crude oil has an API gravity between

There are no two mini refineries that are alike.

The ability to switch between light and heavy crudes means that one crude may require a larger naphtha hydrotreater, a larger naphtha reformer and a larger diesel hydrotreater whereas the other may not. We typically analyze many crude scenarios for your mini refinery to

When someone calls asking how much a 10,000 barrel per day mini refinery would cost, my response is that it depends on: API gravity,sulfur content,products desired sulfur specifications on finished products and the ability to switch between different crudes.

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determine the best configuration and process unit sizes during the feasibility study which is performed at the beginning of any new project.

Let’s look at three variations of minirefineries: A simple topping refinery

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• A hydro skimming refinery with naphtha and diesel hydrotreaters • A hydro skimming refinery with naphtha and diesel hydrotreaters and naphtha reformer.

Source: R.C. Costello & Associate, Inc

Global Oil Storage Market The global oil storage market is set to become more competitive due to burgeoning investments by some of the key market players, according to Transparency Market Research (TMR).

was valued at $12.86bn in 2016, and is expected to reach $17.22bn at a compound annual growth rate (CAGR) of 4.2% from 2017 to 2023. Fluctuations in global rates of natural gases and crude oil are prompting vendors to own high Various industry players are undertak- qualities of petroleum fuel and reserve ing strategic collaborations including them at storage facilities. joint ventures, acquisitions, mergers and partnerships in order to establish a The storage can even be for a short stronger market position. span of time as the oil could be transported for refinement. Increase in oil The stiffening competition in the oil production is another factor that has trading market is prompting the encouraged suppliers to improve their players to expand their crude oil storage inventories and infrastructure to store infrastructure and terminal networks, large quantities of oil. and invest in the development of storage Source: Martin Menachery, facilities and new pipelines. The market Oil and Gas Middleeast

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CARIBBEAN

Petroleum Energy Highlights March/April 2019

• • • • • • • •

Bahamas Petroleum still in talks over drilling funds...[ ]...Read More Wärtsilä Delivers Power Plant On Fast-Track To Help...[ ]... Read more Barbados to produce energy at Portvale Sugar ...[ ]... Read more $4b Energy Deal - Inter-Energy Acquires JPPC...[ ]...Read More • No gas tax rollback Earth Today | Dominica Goes After Renewables...[ ]...Read More Over $15.6B reaped from oil and gas sector thus far...[ ]...Read More Trinidad Petroleum says SOL Barbados purchase ...[ ]...Read more UTech student named 2019 recipient of PCJ renewa...[ ]...Read More

• Towards a Transparent and Effective Management of Guyana’s Oil and Gas Sector...[ ]...Read More • Barbados to start exploration for petroleum resource...[ ]...Read More • Press release: Interenergy Group acquires Jamaica..[ ]...Read More • JPS Invests $25m In Storage Facility To Address...[ ]...Read More • • • •

Chevron to gain Anadarko’s offshore Guyana ...[ ]...Read More Wigton has saved Jamaica US$54m in oil imports....[ ]...Read More Infrastructure for oil and gas benefits not yet defined...[ ]...Read more Cahill Energy Barbados acquired by Quantum Utility...[ ]...Read More

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Regular Unleaded Gasoline Average Retail Price (US$/Litre) March/April 2019 MAR

APR

$1.17

Bahamas

$1.25

$1.79

Barbados

$1.86

$1.30

Belize

$1.38

$1.11

Cayman Islands

$1.12

$1.18

Grenada

$1.24

$1.04

Guyana

$1.04

$1.22

Jamaica

$1.23

$1.12

0.83 $0.74

St.Lucia St.Vincent/Grenadines Trinidad&Tobago

$1.12 0.83 $0.74

At the end of April 2019, retail prices for Regular Unleaded Gasoline increased in seven countries, namely: Bahamas, Barbados, Belize, Cayman Islands, Grenada, Jamaica and Monsterrat between 0.4% and 7.7%. Bahamas recorded the highest increase of 7.7%, while Jamaica recorded the lowest change of 0.4%. Prices in Guyana, St.Vincentand the Grenadines and Trinidad and Tobago remained stable over the period.

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PRICES

International Crude Oil Prices from February to April 2019 trended upwards over the three months period. The average price recorded in April 2019 was US$63.89/bbl. This average price was 17.3% higher than the average price seen in February 2019 and 11.2% higher than the average price reflected in March 2019. The lowest price recorded for the commodity over the period was US$53.53/bbl-reflected in week two of February 2019.

The highest price for recorded was US$65.28 /bbl recorded in week four of April 2019.

Average Weekly Oil Prices February -April 2019 70.00

65.28

60.00

57.43

50.00

US$/Bbl

63.89

54.45

53.53

40.00 30.00 20.00 10.00 0.00 Period

WK1

WK2

US$/Bbl

Feb-19

80 70 60 50 40 30 20 10 0

WK3 Mar-19

WK4

MTH AVG

Apr-19

Average Monthly Crude Oil Prices 2016-2018 65.02 50.80 43.10

2016

2017

2018

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CARIBBEAN

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ENERGY MINISTERS’

Bulletin

Renewable Resources

Scientific Developments

• •

We Must Have a Green Industrial Revolution.

And Labour Will Lead it.

But the future is no longer such a rosy place, through the environmental crisis that faces us. as those who saw David Attenborough’s Climate Change: The Facts earlier this month Britain’s expertise in renewable energy could will have realised. If you see a scientist on TV bring tremendous opportunities. these days, they are probably talking about the Where I grew up, visits to Manchester’s perilous state of our climate and the threat Science and Industry Museum were a to our planet’s living systems. From the staple rainy-day activity. I remember the Intergovernmental Panel on Climate Change clanking of the huge, iron waterwheel and to the Met Office to Nasa, some of the being amazed by its power. It was the plentiful greatest minds of our generation are modelling the future, and their conclusions are rain, I was told, and the ingenuity of those behind the technology that powered the mills stark. that ushered in the first industrial revolution, bringing Manchester and Salford into existence. I These conclusions have not been lost on the remember thinking: if this is how far we’ve come thousands of school pupils and Extinction in 200 years, what’s the future going to look like? Rebellion protesters taking to our streets in C A R I B B E A N E N E R G Y I N F O R M AT I O N S Y S T E M ( C E I S ) | 2 0 1 9 We must draw on our history to find a way

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recent weeks. Unless we take rapid action to reduce the carbon dioxide we are releasing into the atmosphere, we face catastrophe. The industrial revolution also started a long process of environmental degradation that now threatens life itself. We stopped dumping industrial and human waste into rivers If we’re going to turn this around – and we have no choice but to turn this around – we’ll have to start

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by acknowledging this for what it is. Last month Labour’s shadow environment secretary, Sue Hayman, declared an environment and climate emergency on behalf of our party. Labour councils have been doing the same. And this Wednesday, Labour .....

Source: Rebecca Long Bailey;The Guardian

Record Solar Hydrogen Production With Concentrated Sunlight Hydrogen will play a key role in reducing our dependence on fossil fuels. It can be sustainably produced by using solar energy to split water molecules. The resulting clean energy can be stored, used to fuel cars or converted into electricity on demand. But making it reliably on a large scale and at an affordable cost is a challenge for researchers. Efficient solar hydrogen production requires rare and expensive materials -- for both the solar cells and the catalyst -- in order to collect energy and then convert it.

came up with the idea of concentrating solar irradiation to produce a larger amount of hydrogen over a given area at a lower cost. They developed an enhanced photo-electrochemical system that, when used in conjunction with concentrated solar irradiation and smart thermal management, can turn solar power into hydrogen with a 17% conversion rate and unprecedented power and current density.

What’s more, their technology is stable and can handle the stochastic dynamics of daily solar irradiation.

Scientists at EPFL’s Laboratory of Renewable Energy Science and Engineering (LRESE) Source: Ecole Polytechnique Fédérale de Lausanne.

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Country Happenings MONSTERRAT Renewable Energy Project, A Monumental Step Toward Sustainability: 250 KW Solar PV project Today, the Ministry of Communications, Works, Labour and Energy (MCWLE) and Montserrat Utilities Limited (MUL) officially announce the first utility scale renewable energy project ......

DOMINICA World Bank to provide $27 million in support of Dominica’s geothermal development On March 19, 2019, the World Bank’s Board of Executive Directors approved US$27 million to support the construction of a 7 MW small geothermal ower plant in the Commonwealth of Dominica, which aims to increase the share of renewables....

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FEATURED OFFERS: PETSTATS - the Caribbean Energy Information System (CEIS) primary report of historical (annual) petroleum energy statistics. Included are data on petroleum energy production, consumption and trade; overviews of natural gas, electricity as well as financial and environmental indicators.

CEMB - The Caribbean Energy Ministers’ Bulletin - Sustainable Energy, Renewable and Breakthrough Technology.

Subscriptions - If you wish to subscribe (free of charge) or cancel your subscription to the CARIBBEAN ENERGY UPDATE, send us an email at: ceis@src-jamaica.org See CEIS FOR MORE: www.ceis-caribenergy.org Join us through CIPORE on Facebook, Twitter, LinkedIn and Subscribe to our RSS Feed and CEEBIP (Caribbean Environment and Energy Business Information Platform) C A R I B B E A N E N E R G Y I N F O R M AT I O N S Y S T E M ( C E I S ) | 2 0 1 9