By:Thestkittsnevisobserver

The Caribbean used to be a major area for oil refining and storage. However, in 2012, many refineries shut down, including those on the US Atlantic Coast, leaving the region less important.

Now, new refineries and changes in global oil markets are bringing renewed interest to the Caribbean. Nigeria’s huge Dangote refinery is a key player, drawing companies interested in reviving the region’s energy sector.

One company, Oceangate Oil and Gas Engineering from Nigeria, has teamed up with Global Petroleum Group. They plan to develop oil and gas in Grenada, aiming to turn it into a regional energy hub. This deal, announced on Oct. 27, is worth $1.8 billion and could grow to $8 billion as they explore Grenada’s oil potential.

Global Petroleum Group has been exploring Grenada’s offshore oil fields since 2008.

They have a license from Grenada’s government to operate in several areas for the next 38 years. Though some surveys have found potential reserves, Grenada hasn’t yet confirmed any proven reserves.

Oceangate hopes its involvement will help start oil production in Grenada. Currently, the island has no active oil or gas production.

Oceangate also has interests in two oil fields in Nigeria’s Niger Delta, though these are not producing yet and are expected to start up by 2041 and 2048.

The Caribbean, especially Grenada, is drawing attention from Nigeria as the Dangote refinery starts operations.

Prime Minister Dickon Mitchell of Grenada recently visited the refinery to discuss possible partnerships. Nigeria’s Dangote Group is interested in working with Caribbean nations on refining, cement, and fertilizer production, given both regions’ past reliance on imported fuel.

At the present time Mitchell is not saying anything about any plans to open up production in Grenadian waters, but he has a “technical group” of experts and advisors evaluating the situation.

These partnerships might involve oil supply deals for the Dangote refinery, which is seeking reliable crude sources. The refinery could sell its refined products to the Caribbean in exchange.

Trinidad and Tobago, one of the Caribbean’s top oil producers, also hopes to restart its refinery. The government is considering three potential buyers or operators for its refinery, which closed in 2018. One of these companies is Nigeria’s Oando PLC.

Trinidad currently produces about 54,000 barrels per day of oil, with some exports going to US refineries.