PETROCARIBE GAS ON THE MARKET

UNCLAS PORT AU PRINCE 001377 SIPDIS SENSITIVE SIPDIS STATE FOR WHA/CAR WHA/EPSC FOR FAITH CORNEILLE, ED MARTINEZ EB/IFD STATE PASS TO USAID FOR LAC/CAR COMMERCE FOR SCOTT SMITH E.O. 12958: N/A TAGS: ENRG EPET ECON EAID HA SUBJECT: PETROCARIBE GAS ON THE MARKET REF: PAP 1205 ¶1. (U) This message is sensitive but unclassified: please protect accordingly. ¶2. (SBU) The PetroCaribe petroleum delivered to Haiti on May 14, the day of President Rene Preval's inauguration, has finally hit the local market. The Haitian Government (GOH) is selling the entire shipment, including the diesel (initially intended as a donation to the national electricity company) and the gasoline, at the same price as petroleum from a July 14 industry ship. (Note: The industry shipment arrives about every two to three weeks. Due to regular arrivals, petroleum companies have not experienced fuel shortages in several months. End note.) So far Dinasa, Haiti's domestic petroleum company, and Total, the French petroleum company with which the GOH has close relations, have expressed an interest in purchasing the PetroCaribe petroleum from the GOH. The two U.S. companies, Esso (ExxonMobil) and Texaco (Chevron),have received the proposal but have not responded. ¶3. (SBU) Comment: The sale of the PetroCaribe shipment does not mean that the PetroCaribe agreement is moving forward in Haiti. The first and only shipment has been a burden on the GOH, which does not have experience with petroleum management. Since the first shipment on May 14, there has been no sign of a second PetroCaribe transport ship, despite the agreement that one shipment would arrive each month. XXXXXXXXXXXX (please protect),an employee of Dinasa, told econoff that managing and selling petroleum stock is difficult for the professionals in Haiti; no wonder the government is having trouble. (Note: The petroleum business is difficult here because all petroleum shipments are delivered to two ports, which are located in unsafe areas of Port-au-Prince. Haiti also lacks adequate storage facilities and methods of transportation, not to mention other infrastructure and commercial inadequacies. End note.) Post will continue to send updates as they are available. SANDERSON =======================CABLE ENDS============================