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China joins Iran in PdV quest to repair refinery

  • Spanish Market: Crude oil, Oil products
  • 08/05/20

The governments of Iran and China are working closely with Venezuelan state-owned PdV to restart the 940,000 b/d CRP refining complex and replenish nearly exhausted fuel supply.

The refinery repair work is quietly carrying on against the tumultuous backdrop of a foiled coup plot over the weekend, giving President Nicolas Maduro a political edge over his US-backed foes in the opposition.

Iranian state-owned Mahan Air has made 16 direct flights since 22 April from Tehran to Josefa Camejo international airport near the CRP on the Paraguana peninsula, bringing in catalyst, refinery parts and technicians from Iran and China, according to five PdV and oil ministry officials with direct knowledge of the ongoing airlift operation between the Chinese city of Chengdu, Tehran and Paraguana.

Venezuela's INAC commercial air authority has authorized Mahan Air to make up to 20 direct flights from Tehran to Paraguana, but additional flights will be approved "as needed," a senior INAC official tells Argus.

Chinese state-owned CNPC subsidiary Jichai Power Equipment Company in Chengdu is among the Chinese firms shipping compressors, refinery parts and technicians to Paraguana with Mahan Air, an oil ministry official said.

China also is supplying PdV with catalyst because Iran does not produce enough of the substance to fully supply the needs of its own refineries, the ministry official added.

Iranian state-owned engineering company Khatam al-Anbiya, a US-sanctioned entity affiliated with the Islamic Revolutionary Guard Corps (IRGC), is also supplying PdV with refinery parts and technicians, the official added.

Local Chinese diplomatic and CNPC officials declined to comment on the downstream cooperation. Iran's embassy in Caracas did not respond to three telephone requests seeking comment.

US-sanctioned Mahan Air has delivered about 700 tons of Iranian and Chinese catalyst since 22 April, a PdV downstream official at the CRP refining complex said by telephone. Among the delivered parts are compressors and pumps, the oil ministry said.

Mahan Air has set up an "air bridge operation" that extends from Chengdu through Tehran to Paraguana, according to a member of Venezuela's PdV restructuring commission.

"In some instances, cargoes have been transferred from flights arriving in Tehran from Chengdu to flights leaving Tehran immediately for Venezuela," the commission official said. "We're confident we can restart the CRP's gasoline production operations soon with the assistance of our Iranian and Chinese partners."

The flights are returning immediately to Tehran within hours after landing in Paraguana, according to a CRP union official who claims to be in "permanent contact" with workers at the heavily militarized airport.

The cooperation was brokered directly by new acting oil minister Tareck El Aissami, who also heads the restructuring commission, ministry and PdV officials said.

Aissami's commission co-chair, acting PdV chief executive Asdrubal Chavez, also participated in the refinery repair discussions.

The Maduro government is paying Mahan Air and suppliers of catalyst, parts and technical support in Iran and China with gold bullion from the Central Bank of Venezuela.

A Venezuelan central bank official confirmed reports that over nine tons of gold valued at more than $500mn have been shipped from Venezuela to Iran since the airlift started on 22 April.

PdV repair crews supported by Iranian and Chinese technicians currently are focusing efforts on restarting up to 86,000 b/d of gasoline production at the 305,000 b/d Cardon refinery, which together with the 635,000 b/d Amuay refinery comprises the CRP refining complex that PdV has operated as a single integrated facility since 1997.

After Cardon resumes crude processing, the Iranian and Chinese technicians will support PdV's efforts to restart Amuay and the 140,000 b/d El Palito refinery in Carabobo state, the oil ministry said.

Skepticism

The CRP, which accounts for about 72pc of PdV's crippled domestic refining capacity of 1.3mn b/d, was once considered a world-class facility. The complex has a combined 42 crude processing units including 10 distillation towers, nine vacuum distillation units, nine hydrotreaters, two fluidized catalytic crackers, three deep conversion units, three alkylation units, two isomerization units, three MTBE/TAME units, and one catalytic naphtha reformer.

The CRP also has lubricants, asphalt and sulfur production units, plus over 57.3mn bl of combined crude and refined products storage capacity.

"Almost all of the CRP's crude processing units are currently shut down, with a handful at about 10pc of their nominal capacity," a senior oil union official at Cardon said.

Despite the intensive airlift operations, union officials at the CRP remain skeptical that PdV can restore gasoline production in the near term.

"The CRP is engineered to operate as an integrated unit, which means all of its processing units must be operational to assure safe and sustained fuel production," a senior union official said.


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20/06/25

Iran’s refineries at risk in escalating conflict

Iran’s refineries at risk in escalating conflict

Iran would probably have to curtail products exports and turn to the import markets if its refineries are attacked, write Ieva Paldaviciute and Nader Itayim Dubai, 20 June (Argus) — Key oil and gas production and export facilities have stayed out of the firing line a week into the conflict between Tehran and Tel Aviv, bringing a degree of relief to global markets. But the targeting of downstream assets by both sides has raised the spectre of looming domestic fuel shortages if the conflict endures. No Iranian crude refineries have been hit yet in the Israeli strikes that, for the most part, have focused on key military and nuclear-related infrastructure and personnel. But strikes on two gas processing facilities in the south of the country and two products storage facilities on the outskirts of Tehran suggest refineries, or condensate splitters, soon could be affected. Iran retaliated by attacking Israel's 197,000 b/d Haifa refinery on 15 June, damaging is power supply system. The plant initially continued crude processing while shutting some secondary units, but it fully halted operations on 17 June. Iran has nearly 2mn b/d of crude refining capacity spread across nine facilities, which rises to about 2.4mn b/d when including the 360,000 b/d Persian Gulf Star condensate splitter in Bandar Abbas, on the Mideast Gulf coast. This is up from below 1.9mn b/d a decade ago, after capacity additions at the 58,000 b/d Shiraz, 630,000 b/d Abadan and 220,000 b/d Tehran refineries, among others. Iran nevertheless has grappled with a severe products imbalance in recent years, driven primarily by a fast increase in its domestic fuel consumption. Although operations at all refineries remain unimpeded, the conflict has triggered a frenzy of fuel buying by Iranians, particularly in Tehran, with Israel warning residents to leave the city as it intensifies its bombing campaign. If any refining infrastructure is hit, Iran may quickly have to halt products exports to ensure that domestic supply can be met. Iran is a net exporter of fuel oil and naphtha, but its position as a gasoline and gasoil exporter has diminished in recent years owing to its fast-growing domestic demand. The reimposition of US sanctions on Iran by US president Donald Trump during his first term in 2018 and his "maximum pressure" campaign on Tehran at the start of his second term in January have only added pressure to its products trade. Iranian naphtha is shipped mainly to the UAE, where it is used as a gasoline blendstock. Iran exported about 116,000 b/d of naphtha in January-May, data from consultancy FGE show, down by 12pc from its 2024 exports. Transfer news Iranian fuel oil typically makes its way to floating storage hubs in Asia-Pacific, often after multiple ship-to-ship transfers designed to obscure its origin. Some cargoes are then re-exported to China and bought by independent refiners as feedstock fuel. Fuel oil exports stood at 252,000 b/d in the first five months of this year, down from 264,000 b/d last year. Iran has had to turn to imports to bridge the gap between its gasoline production of about 660,000 b/d and average consumption of 780,000 b/d during the Iranian year to 20 March 2025, according to state-owned refiner NIORDC. Iran's diesel production has also been playing catch-up, with heavily subsidised consumption exacerbated by fuel smuggling to neighbouring countries. Iran still exported 42,000 b/d of diesel this year, according to FGE, but this is less than half of the 102,000 b/d it exported last year. The Haifa refinery is a key supplier to Israel's domestic market but it also exported about 12,000 b/d of diesel and gasoil, and 13,000 b/d of fuel oil in January-May, mostly to neighbouring countries in the Mediterranean. A prolonged shutdown could result in Israel turning to products imports, pressuring supply chains in the Mediterranean. Israel aims to restart the plant within weeks. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

DUH fordert Drosselung von PCK-Produktion


20/06/25
20/06/25

DUH fordert Drosselung von PCK-Produktion

London, 20 June (Argus) — Die Deutsche Umwelthilfe hat vergangene Woche Widerspruch gegen die Emissionen-Ausnahmegenehmigung für die PCK Raffinerie Schwedt eingelegt und zugleich ein gerichtliches Eilverfahren vor dem zuständigen Verwaltungsgericht begonnen. Sollte der Eilantrag Erfolg haben, müsste die PCK ihren Betrieb drosseln, so die Hoffnung der DUH. Das Landesamt für Umwelt in Brandenburg (LfU) hatte Ende April 2025 der PCK (230.000 bl/Tag) in Schwedt die Ausnahmezulassung erteilt, fünfmal so viel Schwefeldioxid und Schwefeltrioxid zu emittieren wie das zulässige Tagesmittel. Das entspricht einer Anhebung der zulässigen Tagesemissionsgrenze — laut Bundesemissionsschutzverordnung (BImSchV) — von 200 mg/Nm3 auf 1000 mg/Nm3.Die erteilte Ausnahmeregelung soll vorerst bis Dezember 2027 gelten. Begründet hatte die PCK den genehmigten Antrag damit, dass eine Einhaltung seit dem Ende der Rohölversorgung aus Russland nicht mehr möglich sei. Seitdem werden über Rostock, Danzig und aus Kasachstan bis zu 20 verschiedene Rohölsorten mit unterschiedlichen Schwefelgehalten importiert, was zu höheren Emissionen von teilweise bis zu 1000 mg/Nm3 führen kann. Die Deutsche Umwelthilfe (DUH) sieht in der erteilten Genehmigung "gravierende Verstöße gegen europäisches und nationales Umwelt- und Genehmigungsrecht". Die Genehmigung hätte nur einem "Verfahren mit Umweltverträglichkeitsprüfung und grenzüberschreitender Öffentlichkeitsbeteiligung erteilt werden dürfen." Außerdem würde die Genehmigung dem Bundes-Immissionsschutzrecht widersprechen, das sich an Tagesmittel- und Halbstundenmittelwerten als Emissionsgrenzwerte orientiere, so die DUH. Die DUH hat am 13. Juni beim LfU Widerspruch gegen die Ausnahmeregelung für die PCK eingelegt und zudem einen gerichtlichen Eilantrag an das Verwaltungsgericht Frankfurt/Oder, der an das zuständige Gericht in Potsdam weitergeleitet wurde, eingereicht. Eine inhaltliche Entscheidung könnte bereits in der KW 26 getroffen werden, so das Verwaltungsgericht Frankfurt/Oder. Von einem erfolgreichen Eilantrag beim Verwaltungsgericht in Brandenburg erhofft sich die DUH, dass die in Kraft getretene Ausnahmegenehmigung zunächst aufgeschoben, und die PCK dadurch verpflichtet sein wird, den Betrieb zu drosseln, um die geltenden Emissionsobergrenzen laut BImSchV einzuhalten. Das polnische Klimaministerium hatte sich am 23. Mai zu der erteilten Ausnahmeregelung geäußert. Es erklärte in einer Mitteilung nach dem Treffen mit dem deutschen Bundesumweltminister Carsten Schneider, dass eines der besprochenen Themen die Sorge um die Schwefeldioxidemissionen der Raffinerie in Schwedt gewesen sei. Das polnische Ministerium bat das deutsche Ministerium um Unterstützung bei der Ansprache des Themas mit der brandenburgischen Landesregierung. Dabei bat die polnische Seite um Zugang zu Messungen der Luftqualität im Raum Schwedt und erklärte, dass das deutsche Ministerium sich diesbezüglich kooperativ zeige. Die PCK beliefert neben dem deutschen Einzugsgebiet weite Teile Westpolens mit Produkt. Von Marc Hauschild und Tomasz Stepien Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Egypt’s diesel imports rise as Israeli gas halt bites


20/06/25
20/06/25

Egypt’s diesel imports rise as Israeli gas halt bites

Dubai, 20 June (Argus) — Egypt is ramping up diesel imports to keep its power plants running after Israel halted pipeline natural gas supply in response to its ongoing conflict with Iran. The country is on track to receive 354,000 b/d of diesel and other gasoil in June, according to preliminary data from Vortexa. Kpler estimates a lower volume of 275,000 b/d. By comparison, Egypt imported an average of 217,000 b/d in 2024, both firms show. More than 60pc of this month's imports are coming from Saudi Arabia, primarily from the Red Sea ports of Yanbu and Jizan. These cargoes benefit from proximity and a freight advantage, as they can reach Egypt while avoiding the security risks in the Bab el-Mandeb strait. The surge in diesel demand follows Israel's suspension of gas exports to Egypt and Jordan on 13 June, after it shut production at the Leviathan and Karish gas fields in response to an escalation in its conflict with Iran. On the same day, Egypt's energy ministry announced it had halted gas supply to some industrial users and instructed power plants to burn diesel in the "maximum available quantity". Egypt is seeking to ensure adequate power generation during the onset of the summer cooling season. Its need to replace lost gas supply with diesel is adding pressure to an already tight European diesel market . Already structurally short of diesel, Europe has faced reduced inflows from the Mideast Gulf and India since April, while US shipments have been limited. Diesel values and refining margins in Europe have shot up in the past week as supply concerns mount and freight rates rise. The Mediterranean market is particularly tight following the introduction of a new International Maritime Organisation emissions control area (ECA) in May. The ECA requires ships to use fuel with a maximum sulphur content of 0.1pc, down from 0.5pc. Marine gasoil (MGO) and ultra-low sulphur fuel oil (ULSFO) meet the new standard. But much of the gasoil used in MGO blending is also suitable for desulphurisation and road fuel use, so its diversion into marine fuels is tightening diesel supply. Egypt could also turn to fuel oil for power generation, which may further increase MGO demand and tighten the Mediterranean diesel market. Meanwhile, repair and maintenance work at Israel's two refineries has placed additional strain on diesel and other gasoil supply in the Mediterranean. The 197,000 b/d Haifa refinery was shut on 16 June after being damaged in an Iranian missile strike, and the Ashdod refinery entered partial scheduled maintenance on the same day. Egypt is due to install two additional floating storage and regasification units (FSRUs) by the end of June. The added LNG import capacity could help offset the loss of Israeli gas and ease diesel demand. By Ieva Paldaviciute and Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop 28 outcome must be implemented in full: Cop 30 head


20/06/25
20/06/25

Cop 28 outcome must be implemented in full: Cop 30 head

London, 20 June (Argus) — The incoming UN Cop 30 summit president Andre Correa do Lago has set out his objectives for the conference in November, placing as a key priority the Cop 28 outcome of trebling renewables capacity and transitioning away from fossil fuels. Correa do Lago today said his plan is to drive "collective action" to tackle climate change, placing a strong emphasis on the global stocktake, the first of which was concluded at Cop 28 in 2023 . That outcome saw almost 200 countries commit to "transition away" from fossil fuels, as well as treble renewables capacity by 2030. The global stocktake, a five-yearly process, sets out progress made towards Paris climate agreement goals. Today's "Action Agenda must drive momentum towards the full implementation of the GST [global stocktake]", Correa do Lago said. The incoming Cop president is focusing on implementing agreements made at previous Cops, and ensuring that countries and all other stakeholders — such as sub-nationals and the private sector — work together to put the decisions into action. Correa do Lago's letter today repeated language from the Cop 28 outcome, and noted his other main themes for Cop 30, which will take place in Belem, in Brazil's Para state, on 10-21 November. As well as shifting energy, industry and transport from fossil fuel-powered to lower- or zero-carbon alternatives, he listed forests, oceans and biodiversity and agriculture and food as key topics. Further topics involved building resilience for cities, infrastructure and water and human and social development. A final priority was enablers and accelerators across the board, including for finance and technology. Correa do Lago said in May that Cop 30 should be a "pivot point" to action on climate change, and "a new era of putting into practice" what has been agreed at previous Cop summits. He has noted a difficult geopolitical situation , which could make talks more challenging. Brazil's Cop 30 presidency is also focused on climate finance at UN climate talks, currently underway in Bonn, Germany. These 'halfway point' discussions serve to cover substantial technical groundwork ahead of political talks at Cop summits each November. Brazil yesterday at Bonn presented a draft of a roadmap to scale up climate finance — from all sources — to $1.3 trillion/year by 2035. The roadmap will not be officially negotiated, although it was a key outcome from Cop 29 in 2024 and is likely to be finalised just ahead of Cop 30 this year. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Norway’s Johan Castberg oil field reaches full capacity


20/06/25
20/06/25

Norway’s Johan Castberg oil field reaches full capacity

London, 20 June (Argus) — Norwegian firm Equinor's Johan Castberg oil field in the Barents Sea has reached its full production capacity of 220,000 b/d, less than three months after coming on stream, the company said today. The field reached the milestone on 17 June, with only 17 of the planned 30 production wells completed. Equinor plans to drill six more wells to maintain plateau levels and expects the field to remain on stream for at least 30 years. Castberg holds estimated recoverable reserves of 450mn–650mn bl. Equinor aims to boost this by a further 250mn–550mn bl, partly by developing the nearby Isflak discovery. A final investment decision on Isflak is expected by year-end and start-up is targeted for 2028. The company also plans to drill one or two exploration wells near Castberg every year. The field came on stream on 31 March this year. Castberg's crude is medium sweet with gravity of 32.7°API and 0.17pc sulphur content, and is rich in middle distillates. The grade was assessed at a $5/bl premium to North Sea Dated on a cif Rotterdam basis in June, before the escalation of Israel-Iran hostilities — around $3/bl above US light sweet WTI on the same basis. Castberg's July loading programme comprises 10 cargoes of 700,000 bl each, equivalent to 226,000 b/d. By Lina Bulyk Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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