PdV at odds to sustain fuel production

Long lines of desperate motorists have again become a common sight in Caracas as state-owned PdV fails to sustain fuel production at its at main refining complex.

Up to 36 service stations in the capital were shut down yesterday. Fuel is even more scarce in the rest of Venezuela.

At the CRP, a crude distillation unit at the 635,000 b/d Amuay refinery shut down because of failed industrial services, including electricity supply. Another distillation unit at the nearby 305,000 b/d Cardon refinery was also unplugged because of a broken pump, according to four CRP officials.

The shutdown of the CRP's only two operational distillation units, which had been processing up to a combined 135,000 b/d of crude since the end of August, halted production of 32,000 b/d of gasoline and 30,000 b/d of diesel until repairs are completed by early next week.

"PdV since yesterday is not producing any gasoline or diesel anywhere in Venezuela, but we hope to resume fuel production by 14 September," one of the officials told Argus.

PdV crews are working to make the needed repairs and also mend a ruptured pipeline at Rio Seco in Falcon state that is leaking crude into the sea. The damaged pipeline is part of midstream grid that transports crude from oil fields in Zulia state to the Cardon and Amuay refineries at the CRP complex.

Two oil union officials at the CRP warned that an offshore natural gas pipeline near Rio Seco also appears to have ruptured, but gas supplies to Amuay and Cardon have not been disrupted. The CRP complex obtains its gas from the Perla offshore field operated by Spain's Repsol and Italy's Eni.

PdV and the oil ministry have not commented on the refining problems, but President Nicolas Maduro routinely blames US sanctions.

Venezuela's US-backed opposition argues that the fuel shortage is a result of neglect and corruption by Maduro's government, which it accuses of diverting cargoes to its political ally Cuba.

Under oil sanctions imposed in January 2019, the US has severed most gasoline supply to Venezuela and is working to end an exception for diesel supplied by India's Reliance, Eni and Repsol under swap and debt transactions.

Iran in May-June used tankers owned by national company NIOC to deliver five cargoes of gasoline and alkalyte to Venezuela, catching the US by surprise. Washington subsequently vowed to disrupt further deliveries of Iranian fuel to Venezuela. Shippers based in the UAE, Oman and the UK told a US court on 1 September that they hold title to cargoes seized by the US aboard four tankers that allegedly were transporting more oil products from Iran to Venezuela.