News Post
Cuba moves forward with $2.7 bn LNG, ammonia projects
Cuba continues moving forward with development of a $1.4 billion natural gas regasification project and a $1.2 billion urea and ammonia plant under a Venezuelan initiative to provide cheap fuel to regional allies.
The regasification project will have the capacity to process 2.06 million metric tons per year and consist of building facilities to receive and process LNG, Petroleos de Venezuela SA said in a December report released last week. The aim of the project is to provide a clean and low-cost energy source to the population, the company said without giving a completion date.
The urea and ammonia plant will have the capacity to process 400,000 metric tons per year of urea and 370,000 metric tons per year of ammonia. The project seeks to benefit Cuba’s industrial sector, particularly plastics, industrial agriculture and chemical products, PDVSA said.
Output from the urea and ammonia plant will be destined to meet demand in Cuba while excess output will be exported by PDVSA’s petrochemical affiliate Pequiven to countries in Central America and the Caribbean. The project conceptualization phase has been finalized though no completion date was given.
Created by late Venezuelan President Hugo Chavez in 2005, the Petrocaribe Initiative lets its 18 member countries buy oil from PDVSA at market prices, paying 5% upfront and the remainder over 25 years at 1% interest.
PDVSA exported an average 103,400 bpd to Petrocaribe members in 2013 compared to 102,000 bpd in 2012, the company said. Cuba, under an accord with Venezuela, received 89,600 bpd in 2013 from PDVSA compared with 91,100 bpd in 2012.
For subscriptions or a demo:
Sam Hassaniyeh
Subscription Executive
Phone: +44 203 4092242
For questions or to give feedback:
Thad Pittman
Senior Researcher
Phone: +1 (713) 525-4605
Download our brochure today!
Project News