Venezuela to Fuel Puerto Rico

San Juan, Dec 1 (Prensa Latina) Puerto Rican state-run AEE (electric energy authority) signed a deal with Venezuela Thursday for diesel supplies at a price lower than the international market.

AEE executive chief Edwin Rivera confirmed the purchase of 250,000 barrels of diesel from Caracas.

Through state-run Petroleos de Venezuela, SA (PDVSA) the Venezuelan government granted a more than 1.5 percent per barrel discount for the refined fuel rated number 2.

The contract will allow Puerto Ricans to reduce energy consumption during the first quarter of 2006, and accounts for 25 percent of the fuel the AEE consumes.

Puerto Rico initially tried to enter Venezuela-spearheaded PETROCARIBE energy project to receive oil at preferential prices but its efforts were obstructed as officials of the Chavez government said that only sovereign nations could join that project.

Puerto Rico has been an associate Free State dependency of the US since 1952, and that status only allows a partial administration without right to sovereignty.

Following Puerto Rican independence leader Juan Mari Bras´ request to Caracas for a deal similar to the one signed, Venezuelan Ambassador to Washington Bernardo Alvarez contacted Puerto Rican President Anibal Acevedo to open negotiations.

The diesel supplies will arrive in Puerto Rica on December 26, 2006.

The AEE expects to buy up to five million diesel barrels from Venezuela, and talks are in process to also purchase fuel in Qatar and Nigeria.