Scant imports leave Venezuela bereft of motor fuel

Venezuela now depends on imports to cover all of its gasoline demand after state-owned PdV lost its remaining production capacity in early November, multiple PdV officials and oil union officials said.

Because fuel imports are limited mostly to barter deals and debt overhang because of US sanctions, gasoline is is in acutely short supply across Venezuela, including in Caracas which is usually spared from deprivation.

PdV downstream managers at the company's 940,000 b/d CRP refining complex, which includes the 635,000 b/d Amuay refinery and 305,000 b/d Cardon refinery, confirm that gasoline production at Amuay was suspended around six weeks ago.

Amuay was able to produce up to 60,000 b/d of 60-octane gasoline until November when its only operational distillation unit and 104,000 b/d fluidized catalytic cracker unit broke down.

Two PdV managers at the CRP said Amuay likely will not resume limited gasoline production for at least three months.

"In the best case, Amuay will restart gasoline production by the end of February, and worst case by the end of April, but this is tentative," one of the Amuay managers tells Argus.

PdV currently imports about 150,000 b/d of finished gasoline mainly through Russian state-controlled Rosneft to supply the local market where consumption last month was estimated at about 140,000 b/d. But little of this motor fuel appears to be reaching local service stations.

Critical gasoline shortages currently are reported by service station operators in 19 of Venezuela's 23 states. Severe shortages have been reported in Caracas this week for the first time in nearly six months, an oil ministry official acknowledged.

Bills of lading seen shown to Argus today by a PdV international marketing official indicate that 50,000-60,000 b/d of the gasoline PdV has imported during the fourth quarter is re-exported immediately to close ally Cuba from PdV's terminals at the CRP and Jose in Anzoategui state.

PdV estimates that up to 30,000 b/d more are smuggled mainly to neighboring Colombia, which leaves about 60,000 b/d available for the domestic market, the PdV marketing official said. "PdV now supplies only 43pc of domestic gasoline demand," he added.

The CRP refining complex is now operating at about 7pc of nameplate capacity overall, while the 190,000 b/d Puerto La Cruz refinery is out of service awaiting repairs to key processing units and essential feedstock imports. The 140,000 b/d El Palito refinery was shut down in 2017.