l> Caribbean reality Sheet
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June 2003

Caribbean truth Sheet The Caribbean Sea region plays vital role together a petroleum processing and also transshipment area, through several significant refineries and also independent warehouse facilities. Furthermore, Trinidad and also Tobago is ending up being an increasingly significant supplier that liquefied herbal gas (LNG) to regional markets and also to the joined States.

Note: information contained in this report is the best obtainable as of June 2003 and also can change.

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GENERAL lift
The islands of the Caribbean basin, v a total population of roughly 37 million in 2002, are mostly net energy importers, with the exemption of hydrocarbon wealthy Trinidad and Tobago. Farming and natural source extraction tasks continue come constitute the basis of the islands" economies, though tourism and also service sectors are growing. In the bigger economies, manufacturing is likewise important, such together oil and natural gas production in Trinidad; pharmaceuticals and also cement in Puerto Rico; and also textiles in the Dominican Republic and Jamaica. Financial growth, however, varies across the region. While many of the islands" economic situations contracted in 2002, Trinidad and also Tobago and also the Dominican Republic"s economies continued to grow, with real gross domestic product (GDP) development rates the 2.6% and also 4.1%, respectively.

Over the previous decade, the Caribbean states have actually made initiatives to combine their economies. The significant regional company is the Caribbean Community and also Common sector (CARICOM), whose members encompass the south American claims of Guyana and Suriname and the main American State that Belize, and the Caribbean islands of Antigua and Barbuda, The Bahamas, Barbados, Dominica, Grenada, Haiti, Jamaica, Montserrat, St.Kitts and Nevis, St. Lucia, St. Vincent and also the Grenadines and Trinidad and also Tobago. All other islands, v the exemption of Cuba, have either combine or observer status. The Caribbean ar has 3 objectives: (a) economic teamwork through the Caribbean solitary Market Economy; (b) coordination of foreign policy amongst the live independence Member States; and also (c) common services and also cooperation in functional matters such together health, education and culture, communications, and industrial relations. CARICOM nations have steadily reduced tariffs among members. As well as CARICOM, the other main establishments of the an ar include the combination of Caribbean States, the eastern Caribbean money Union and the connected Eastern Caribbean central Bank.

OIL and also NATURAL GAS In 2001, the archipelago of the Caribbean region consumed a an unified total the 2.2 quadrillion Btu the energy. Oil is the leading fuel, audit for around 92% of full 2001 power consumption. The Caribbean relies on imported oil for many of its power needs. Barbados, the Dominican Republic, Haiti, and Jamaica are party to the mountain Jose Pact, under i beg your pardon Mexico and Venezuela supply crude oil and refined assets under favorable terms. Herbal gas and also hydropower are offered in countries that have these residential resources. Herbal gas is provided most generally in Trinidad and Tobago, where herbal gas-intensive industries, such together steel, fertilizer, and petrochemicals are important to the country"s economy. Puerto Rico and also the Dominican Republic income liquefied herbal gas (LNG) from Trinidad and Tobago for strength generation.

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Production only three Caribbean countries have oil and also natural gas reserves: Barbados, Cuba, and Trinidad and Tobago. That these, Trinidad and also Tobago is the only far-ranging exporter.

Trinidad and Tobago Trinidad and Tobago is the Caribbean"s largest producer the oil and gas. In 2002, oil production averaged around 141,500 barrels every day (bbl/d), of i beg your pardon 121,833 bbl/d was crude oil. Crude oil oil reserves, in ~ an approximated 716 million barrels, are expected to critical only an additional decade unless new reserves space found. BP is the nation"s biggest oil and gas producer. Petrotrin, the state oil company, is the 2nd largest oil producer.

In contrast, the country"s organic gas reserves room expected to increase substantially in coming years. Proven herbal gas reserves currently stand at 23.5 trillion cubic feet (Tcf). In 2001, the nation produced 536 exchange rate cubic feet (Bcf) of natural gas.

Trinidad and Tobago has come to be one of the significant natural gas advancement centers in the world. Natural gas is expected to surpass oil together the main revenue earner for the country in the near future. Follow to the Trinidad and Tobago set of Energy and also Energy Industries, around 36% that its natural gas was exported in 2002 as liquefied organic gas (LNG), while the rest was supplied domestically, specifically for ammonia and also methane manufacturing. Trinidad now has nine ammonia complexes, 6 methanol units, a urea plant, and an iron and also steel complex. In early 2004, the largest methanol tree in the world, Atlas, is expected to be completed. Atlas will certainly be surpassed by an even bigger methanol project, M5000 facility, i beg your pardon is as result of enter manufacturing in 2004. Trinidad is the world"s leading exporter the both ammonia and methanol.

Exploration and also Production Both organic gas and oil exploration tasks in Trinidad and also Tobago have continued at a fast pace end the last 3 years. Throughout 2000-2001, british Petroleum Trinidad (BPTT) alone added much more than 6 Tcf to its very own reserves. EOG resources (U.S.) announced in may 2002 a brand-new discovery in that SECC block, located off Trinidad"s eastern shore. The new discovery is supposed to add 250-350 Bcf of organic gas to the field"s existing reserves. Repsol-YPF and BPTT found in September 2002 nearly 1 Tcf in the Iron equine field, located east of Trinidad and also Tobago.

Recent breakthroughs The Trinidad and also Tobago federal government granted approval in in march 2003 come BHP Billiton, TotalFinaElf, and also Talisman energy to continue with the $726 million very first phase development of the higher Angostura project, located off the northeastern coastline of Trinidad. The suppliers will be arising Block 2(C). Billiton approximates that the block includes up to 160 million barrels the oil and 1.75 Tcf of organic gas. That is intended that this field might produce 75,000 to 100,000 bbl/d, considerably increasing the country"s rudely oil production.

In April 2002, BG International, Billiton, Talisman, and also TotalFinaElf signed a production Sharing Contract (PSC) through the government for the nearby Block 3(a). The group plans to drill 2 wells in the Block later on this year.

Deepwater exploration In 1998, Shell, BP, Arco and also ExxonMobil obtained licenses come drill off the eastern shore of Trinidad in depths varying from 2,460 come 4,921 feet. The 4 deepwater block - 25(a), 25(b), 26 and also 27 - have yet to produce oil after drilling 7 wells. In in march 2003, Shell went back Block 25(a) to the Trinidad government, after the well showed to it is in noncommercial. The Trinidad federal government is not giving up hope of detect commercial shop of oil. In June 2002, the government, in conjunction with 12 foreign firms, embarked on a new seismic research of formerly unexplored areas with depths ranging from 5,576 come 9,480 feet.

New license Round The Trinidad and also Tobago government plans come launch a nine-block license round, i beg your pardon is expected to operation from may 23 come September 30, 2003. The very first two Blocks, 23(a) and 24(b), space in ultra-deep water. Lock are located near the area where the government recently conducted a seismic examine (mentioned above). Block 2(ab), 3(b) and 4(a) are situated in shallow waters come the eastern of Trinidad. Blocks 1(a) and 1(b) space west that Trinidad in the Gulf of Paria. The finally two Blocks, 22 and also 24, likewise located near 23(a) and 24(b), yet are not as deep.

Joint Field advance with Venezuela Trinidad and also Tobago has remained in negotiations with Venezuela come develop and possibly combine the two countries" gas make reservation in the Deltana region, located of the Paria Peninsula. This negotiations, however, have actually been placed on hold.

Pipelines The Trinidad and Tobago federal government plans to construct an undersea natural gas pipeline transparent the east Caribbean states. The propose 600-mile pipeline would certainly run north from Trinidad, connecting to various other islands en course to the French island of Guadeloupe. The pipeline would serve the archipelago Martinique, Guadeloupe, Barbados, Grenada, St. Vincent, Grenadines, St. Lucia and Dominica. There has also been discussion of potentially expanding the pipeline to Florida.

LNG Trinidad and Tobago is the biggest LNG exporter to the united States. The Atlantic LNG firm of Trinidad and Tobago currently operates 3 LNG trains ~ above the islands. The Atlantic plant is thought about the biggest single-train plant ever built, and also the an initial LNG producer in the Latin America and Caribbean region.

The plant recently underwent a $1 billion development to triple its volume from 3 million come 9 million lots per year by adding a 2nd and 3rd train. Train 2 started operation in respectable 2002, while Train 3 came on line in April 2003. 62.5% of the complete output the Trains 2/3 is cursed to the Spanish market. The staying 37.5% is sold in the U.S. Market, mostly in southeast, with the Elba Island Terminal and also to Lake Charles. The Dominican Republic likewise imports LNG indigenous Trinidad.

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BP is building one of the world"s largest offshore gas handling units, the Kapok platform, as component of a $600 million project to supply gas come these additional trains. BPTT is also constructing a 30-mile lengthy pipeline, the "Bombax". The pipeline will certainly feed natural gas from Kapok to Atlantic LNG"s Trains 2 and 3, and also to the Atlas Methanol plant. The pipeline will certainly be one of the world"s largest, with a transfer capacity 2 billion cubic feet every day (Bcf/d).

Partners the Train 1 room BP, BG, Repsol, Tractebel, and also National Gas firm of Trinidad and also Tobago (NGC). Partners of Train 2 and 3 are BP, BG and Repsol.

Additional Trains Negotiations because that the construction of a 4th train, which, according to design plans, would raise Trinidad and also Tobago"s LNG production capacity come 13.8 million tons per year, space ongoing. The building of the 4th train was originally scheduled to begin by the finish of 2002 and also come digital at the end of 2005. The government has likewise indicated the it would certainly be interested in creating a fifth and sixth train.

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Cuba
Cuban oil production has more than doubled because 1991. In 2002, Cuban oil production averaged 49,300 bbl/d while oil consumption averaged 157,000 bbl/d. Most domestic crude oil production consists of a heavy, sulfur-laden oil, i beg your pardon is converted into usable fuel. Refineries process imported crude oil oil, largely from Venezuela and Mexico. Cuba has actually a financial plan with Venezuela, permitting for the revenue of oil under preferential conditions. Cuba imports 53,000 bbl/d of crude oil oil and refined assets from Venezuela, representing around a third of the island"s oil demand. The contract, which to be signed in October 2000, is collection to expire in 2005. Organic gas production has also increased significantly in Cuba because the early on 1990s. As of January 2003, proven natural gas make reservation stood in ~ 2.5 Tcf.

Exploration and Production The Cuban federal government plans has set a score to generate every one of its electricity need from residential crude oil resources, do the island self-sufficient in energy. Boosts in oil and natural gas production already fulfill more than 50% of domestic energy demand, follow to the Cuban government. The government has forecasted the the merged oil and also natural gas manufacturing will boost by 17% in 2003.

Cuba"s ar waters in the Gulf that Mexico space expected to host the most promising oil prospects. In early 2000, Cuba available 59 offshore block in that deepwater economic exclusive ar (EEZ) for oil expedition by international oil companies. The Cuban federal government has forgive Repsol-YPF (Spain) and also Sherrit global (Canada) block in the EEZ. The United claims maintains an economic embargo versus Cuba, and oil providers from other countries may be topic to U.S. Sanctions under the Helms-Burton action of 1996 if they conduct far-ranging transactions in Cuba.

New developments Sherrit international announced in march 2003 the it plans come invest $110 million in its oil and gas operations in Cuba. Petrobras of Brazil expressed attention in restarting oil exploration in Cuba ~ the Cuban government available Petrobras a deep-water exploration block in Gulf the Mexico. 2 years ago, Petrobras exit exploration efforts in Cuba adhering to disappointing results. Pebercan (Canada) doubled crude oil manufacturing at that is Block 7 joint-venture (Sherrit) in 2002. Pebercan expects to rise its manufacturing as the brings more wells online.

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Barbados Oil manufacturing for 2002 totaled 1,200 bbl/d. Oil manufacturing has decreased slightly due to the fact that 2001 regardless of efforts the Barbados national Oil company (BNOC) to broaden oil production. BNOC contracts v a consortium led by Triassic. Together Barbados has actually no refining capacity, that oil is refined in Trinidad, and also then changed for domestic consumption.

Other regional Developments Jamaica announced in April 2003 that it plans to restart exploration efforts off its southern coast. Jamaica expects to obtain support from Ecuador and Venezuela. U.S. Carriers AES ocean LNG and El Paso and also Belgium"s Tractebel have actually plans to construct regasification terminals in the Bahamas, from wherein it would certainly be piped come Florida. If approved, AES would construct a regasification terminal at ocean Cay in the Bahamas, along with a 54.3-mile pipeline to Florida. The pipeline would have a capacity of 842 million cubic feet every day (Mmcf/d). AES has already received provisional permission from both the U.S. Federal power Regulatory the supervisory board (FERC) and the Bahamian government. Environmental affect assessments will recognize whether the job will have the ability to proceed. Tractebel, which also received approval indigenous FERC however is still waiting approval from Bahamian authorities, would construct a LNG regasification terminal in Freeport, on cool Bahama Island, and also a 54-mile pipeline (Calypso), through a capacity of 832 Mmcf/d. El Paso has currently received provisional approval from the Bahamian government however not yet from FERC. El Paso additionally plans to build its terminal on grand Bahama Island. The pipeline (Seafarer) would have actually a volume of 1 Bcf/d. The Bahamian government indicated, however, the it would just accept 2 of the three proposed projects. In November 2002, the Bahamian federal government granted the oil company Kerr McGee a patent to drill oil in Bahamian waters. Refining crude oil refining capacity in the Caribbean exceeds 1.7 million bbl/d. Smaller refineries space geared in the direction of meeting regional demand, if the bigger refineries in Aruba, the Netherlands Antilles, Trinidad and Tobago, and the U.S. Virgin Islands offer both local and export markets. The Hovensa refinery the St. Croix, owned by Hess and the Venezuelan state oil company, PdVSA, is amongst the biggest in the west Hemisphere. PdVSA additionally operates the Curacao Isla refinery (the Netherlands Antilles), i beg your pardon the agency is in procedure of expanding. PdVSA is investigating the opportunity of building two brand-new refineries in the Dominican Republic, and also reactivating the Cienfuegos refinery in Cuba.

In august 2002, the Trinidad and also Tobago federal government granted Soreco Inc. Approval for the construction of a 224,000-bbl/d refinery. The refinery, the Sabaneta Refinery Project, is expected to be completed in 2005. However, it remains unclear even if it is the job will relocate forward early to difficulties of securing $2 billion in loans because that the project. U.S. Energy company El Paso plan to market its refinery ~ above Aruba, coastal Aruba Refining Company, in 2003.

Storage The Caribbean region has a number of independent petroleum storage facilities, through the volume to store approximately 100 million barrels of crude oil and petroleum products. In addition to permanent storage arrangements, these framework offer logistical choices for petroleum shipments. Islands with storage framework include: Bahamas, Trinidad, Puerto Rico, Saint Lucia, Aruba, and St. Eustatius, Curacao, and also Bonaire that the Netherlands Antilles.

Exports to the joined States In 2002, the continent United says imported around 390,000 bbl/d the petroleum from the Caribbean, of which about 83% to be petroleum products. The U.S. Virgin Islands was the largest single local exporter to the United says (about 236,000 bbl/d the petroleum products), followed by The Netherlands Antilles (about 74,000 bbl/d that petroleum products), and also Trinidad and also Tobago (80,000 bbl/d of complete crude and petroleum products). Trinidad and also Tobago is the just exporter of crude oil oil (68,000 bbl/d) indigenous the region.

ELECTRICITY Installed electrical generating capacity in the Caribbean over 17 gigawatts (GW). In general, the an ar needs additional capacity. Several nations (including the Dominican Republic, Haiti, and also Cuba) endure power outages top top a consistent basis. Electricity need in the an ar is supposed to flourish substantially in the comes decade.

The Dominican Republic The Dominican Republic has been plagued by electricity blackouts because that years. In 1999, the previous President Leonel Fernandez privatized components of the state-owned Dominican electrical power Corporation (CDE) in the expect of eliminating the country"s strength outage problems. However, privatization has yet to assure a stable supply of electricity to the population.

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A dispute in between the Dominican government and the personal companies which got parts that CDE in 1999 apparently is partly responsible for the blackouts. Once CDE was separation up, Union Fenosa (Edenorte and also Edesur subsidiaries) and AES (Edeeste subsidiary) bought into the circulation network. In September 2002, the government and customers began falling behind on your payments, leave the private companies without sufficient money to pay generators. The distributors periodically stopped offering electricity, causing blackouts. Although existing President Hipolito Mejia renegotiated contracts in between the government and also private power companies in an initiative to settle the country"s power supply troubles in September 2002, the case has no improved.

Despite the need for more structural reform, foreign firms continue to invest in the Dominican Republic"s power infrastructure. AES Andres, a subsidiary of AES, has invested $400 million to construct an LNG import terminal, a regasification facility, a pipeline and a 300-MW combined cycle strength plant, located exterior of Santo Domingo. The LNG terminal received its first shipment in February 2003. However, since the 300-MW strength plant will not be completed until summer 2003, the imported organic gas has been going come the Los Mina strength plant in Santo Domingo, i beg your pardon AES converted from fuel oil to organic gas.

In April 2003, Canada signed two $35 million agreements through the Dominican federal government to construct hydroelectric and also renewable energy projects.

Jamaica In march 2001, the U.S.-based utility, Mirant Corporation, completed an 80% acquisition of previously government-owned Jamaica Public business Company, the island"s main power provider. Mirant has stated that the is making progression in to reduce the variety of blackouts at this time affecting Jamaica due to lack that capacity. Consisting of independent producers, mounted capacity is 700 MW, and Mirant expects to include 385 MW to the system in 2003. Critical year, Jamaica made the decision to start replacing fuel oil with herbal gas for its strength plants and also bauxite and also alumina sectors. The Jamaican government plans to income LNG to meet natural gas demand.

Puerto Rico In January 2000, Puerto Rico"s primary electric power producer and grid operator, publicly-owned Puerto Rico electric Power government (PREPA), initiated a $2.4 billion program to boost the island"s electrical generation capacity. Economic growth in the so late 1990s averaged 3%, resulting in involves that electrical power demands linked with economic growth would exceed generation capacity. In response, PREPA began signing contracts with independent power producers (IPPs) to increase the island"s generation volume from about 4.9 GW come 5.2 GW by 2003. A brand-new 454-MW power station, constructed by U.S.-based AES, is the very first coal-fired tree in Puerto Rico. The plant has actually the additional benefit of being able to offer its steam to Phillips Petroleum"s Puerto Rico subsidiary. The EcoElectrica and also AES infrastructure are component of a general arrangement to reduce Puerto Rico"s dependency on oil for electrical power generation. In august 2000, the first shipment of LNG native Trinidad and also Tobago arrivedat Punta Guayanilla, nearPonce, wherein there is one LNG receiving terminal provided to it is provided gas come the plant.

Renewable Energy only Jamaica and also Cuba had far-reaching amounts the power generated from non-hydro renewable (geothermal, solar, wind, wood and waste) electrical sources in 2001. Cuba produced approximately 0.8 exchange rate kWh that renewable power while Jamaica generated 0.1 exchange rate kWh. The Dominican Republic to be the biggest producer the hydroelectricity in the Caribbean, through 0.7 exchange rate kWh. This was higher than hydropower developed by Cuba, Haiti, Jamaica, and Puerto Rico combined.

major Energy consumption in the Caribbean, 2001 Country/Territory full (quadrillion Btu) Petroleum organic Gas Coal Other
Antigua and also Barbuda 0.007 100% --- --- ---
Aruba (NETH) 0.013 100% --- --- ---
Bahamas, The 0.049 100% --- --- ---
Barbados 0.024 96% 4% --- ---
Cayman islands (UK) 0.005 100% --- --- ---
Cuba 0.390 92% 6% 0.2% 1.8%
Dominica 0.0016 75% --- --- 25%
Dominican Republic 0.273 95% --- 2% 3%
Grenada 0.002 100% --- --- ---
Guadeloupe (FR) 0.027 100% --- --- ---
Haiti 0.025 90% --- --- 10%
Jamaica 0.147 98% --- 0.7% 1.3%
Martinique (FR) 0.028 100% --- --- ---
Montserrat (UK) 0.001 100% --- --- ---
Netherlands Antilles (NETH) 0.158 100% --- --- ---
Puerto Rico (US)* 0.428 93% 5% 1% .4%
Saint Kitts and also Nevis 0.001 100% --- --- ---
Saint Lucia 0.005 100% --- --- ---
Saint Vincent/Grenadines 0.003 90% --- --- 10%
Trinidad and Tobago 0.475 10% 90% --- ---
Virgin Islands, U.S. 0.138 95% --- 5% ---
Virgin Islands, brothers (UK) 0.001 100% --- --- ---
Total/Average* 2.202 92% 4.8% 0.4% 2.3%