O.W. businessman uses homemade equipment to make diesel …

The world price of petroleum went up again today, to one hundred and twenty-seven U.S. dollars a barrel. That means of course, that acquisition costs will go up yet again and push the pump prices of fuel even higher. While most Belizeans have endeavored to absorb the shock, tonight News Five’s Janelle Chanona introduces us to a group of businessmen who are confident they can make a trip to the gas station a not so painful experience.

Janelle Chanona, Reporting
Diesel has often been described as the lifeline of the Belizean economy, fuelling the country’s agriculture, productive, and transport sectors.

But in the last decade, the cost of diesel has jumped from three dollars and sixty-five cents to a record high of nine dollars and sixty-one cents. The net effect has been dramatic increases in the cost of living, especially in food prices.

In desperation, some consumers have turned to butane conversion, and following the discovery of oil in Spanish Lookout, raw petroleum to run heavy duty equipment. But most diesel users have simply had to absorb the pain at the pump.

But the Teichroeb family had a very different idea. For the last three months, they’ve been refining Belizean crude into diesel, kerosene, and gasoline.

Peter Teichroeb, Central Products Limited
“If we try hard enough we can make a difference and we gotta show people here we can make a difference in Belize too.”

The construction company owners initially looked into refining to cut their own fuel bills, but as they explored available options, realised they could produce a lot more diesel than they could ever use.

Central Products Limited’s has started refining using homemade equipment, which includes two storage tanks from which the crude is pumped to a separator boiler. While the bunker oil is sent to another tank, the rest of the crude is filtered through stripper stacks and then cooled. Figuring out the process was complicated and it took a year to get it right.

Jacob Wall, Manager, CPL (Translated)
“We started by using a small container, heating the crude to see what the result would be. And from there we began using bigger containers and making changes until we got to where we are today.”

And what they have today are diesel and kerosene, which Teichroeb says are ready for immediate use … and gasoline that is low in octane so it’s being mixed with premium. But Teichroeb pumped it into his Toyota Landcruiser Prado to prove it the fuel is safe.

Janelle Chanona
“Using this process, how much diesel, gallons of diesel are you able to produce?”

Jacob Teichroeb
“Ten thousand gallons a day.”

Janelle Chanona
“And where do you want to go from there?”

Jacob Teichroeb
“From there we want to go to a full process that we can get like forty thousand gallons a day or eighty thousand gallons a day, whatever crude is available we want to try to get to that process.”

That idea will require approximately fourteen million dollars in financing, money the Teichroebs say is already sitting in the bank. But the plan would depend heavily on the outcome of negotiations with the Government of Belize and Belize Natural Energy. Currently C.P.L. is buying crude from B.N.E. for five dollars a gallon but admit they’d need a substantial discount on mass quantities for the refinery to be practical.

Jacob Teichroeb
“We had a business plan set up from 2006 that the revenue, the Government could collect the same revenue when we had a price from B.N.E. that we would do then we could sell the fuel for five-fifty a gallon. Since then the fuel has gone up quite a bit but I still expect on a good price from B.N.E. would sell us on a well head not on a world market basis we could sell do for less than seven dollars a gallon.”

But a local refinery is not a simple proposal. According to Dr. Gilbert Canton, Chairman of Belize Natural Energy, B.N.E. is currently selling crude oil to anyone who shows up at the gate but maintains a long term contract with any company for refining would require a Government policy since local fuel production would significantly impact the current tax and revenue structures. While cheaper fuel here would be a welcome reprieve for local consumers, Canton also points out that the more Belizean oil sold on the international market, the greater the benefits to Belmopan. Another spanner in the works is that Blue Sky, a company which is owned by principals of B.N.E., is also refining the crude on a small basis. And all sides agree the country can only support one refinery.

But if they get their way, the Teichroebs say they can set up their equipment and start converting crude into diesel in less than three months. Reporting for News Five, I am Janelle Chanona.

The Government of Belize has indicated that they will enlist the help of an international expert to formulate a policy on local petroleum sales.