<article><p class="lead">Venezuelan state-owned PdV was forced to halt sorely needed gasoline production at its 140,000 b/d El Palito refinery late yesterday when leaks were detected in the fluid catalytic cracker and distillation tower.</p><p>The production at El Palito had only begun in recent days following a long shutdown. The new suspension leaves PdV without any operational gasoline production capacity and depleted inventories after the company ran into similar problems at its 305,000 b/d Cardon refinery.</p><p>PdV's supply of gasoline imported from Iran in late May and early June has now been exhausted, and further imports are thwarted by US sanctions. </p><p>El Palito's 61,500 b/d FCC and 87,500 b/d distillation tower developed "multiple leaks" after PdV tried unsuccessfully to double gasoline production from 20,000 b/d to about 40,000 b/d, according to a senior oil union official at the refinery, located on the coast of Carabobo state.</p><p>"The cracker and distillation tower could not handle the increasing pressure and processing volumes and several leaks resulted, forcing the operators to execute emergency shutdown protocols," the union official said.</p><p>Three workers with direct knowledge of the incident said the distillation tower and cracker are being inspected to determine what repairs are needed, but cannot say yet how long they will take.</p><p>The Cardon refinery was producing up to 30,000 b/d of gasoline until a distillation tower malfunction on 17 July forced PdV to shut down its FCC. Two Cardon workers said it is unclear when gasoline production there will resume.</p><p>Cardon and the nearby 635,000 b/d Amuay refinery comprise PdV's 940,000 b/d CRP refining complex in Paraguana, where most of the company's 1.3mn b/d downstream nameplate is concentrated. But almost all of its refining system is off line following years of neglect and the sanctions that prevent PdV from importing spare parts. </p><p>The impact of Venezuela's gasoline shortage is mitigated by Covid-19 restrictions that are keeping many people at home. The Opec country has more <a href="https://www2.argusmedia.com/en/news/2124819-venezuela-scraping-by-on-diesel-swaps?backToResults=true">breathing room on diesel</a> because of a humanitarian exception to the sanctions.</p></article>
