Venezuelan President Hugo Chávez unveiled a US$35 million oil-storage facility Saturday in the Caribbean island of Dominica, a day after he met with regional leaders about his PetroCaribe programme.

Chavez said the complex that Venezuela helped build will store 35,000 barrels of diesel, jet fuel and cooking gas.

The PetroCaribe programme, which Dominica participates in, was created in 2005 to supply fuel to allies under preferential terms.

"Dominica will no longer have to concern itself about the supply of gasoline and oil," he told a cheering crowd. "All the oil Dominica will need for the next 200 years will be right there in Venezuela."

People wearing red T-shirts in support of Chávez lined the streets for about two miles (three kilometres) as he made his way from the airport to the facility.

Prime Minister Roosevelt Skerrit promised to supply free cooking gas to poor people but he did not provide details.

The storage complex is located near the capital of Roseau and is named 'Waitukubuli', the Carib Indian name for Dominica.

Chávez said he also will help fund a coffee-processing plant in the tiny Caribbean island and set up a local branch of a leftist Latin American trade group.