PdV hoping to restart gasoline output next week

Venezuelan state-owned PdV is hoping to resume limited gasoline production at its 140,000 b/d El Palito refinery next week pending the repair of distillation and alkylation units, according to an internal technical report seen by Argus.

El Palito's 61,500 b/d fluid catalytic cracker (FCC) was placed in recirculation mode on 3 August after workers repaired multiple leaks that shut down the unit on 21 July.

El Palito's output of 91-octane gasoline had climbed to over 15,000 b/d before rising pressures in the FCC and distillation tower caused the leaks.

"El Palito's cracker is recirculating a little over 10,000 b/d since 3 August but the unit cannot produce gasoline safely at less than 50pc of its capacity. For that we need operational distillation and alkylation units," a senior refinery manager said.

The 305,000 b/d Cardon refinery suspended production of up to 20,000 b/d of gasoline on 6 July after twin fires and equipment failures shut down the 86,000 b/d FCC and its sole operational distillation tower. The PdV's 635,000 b/d Amuay refinery has been off line since March, a senior CRP manager said.

The downstream problems coupled with US sanctions and the exhaustion of imports from Iran have dried up gasoline most Venezuelan service stations.

Under a two-tiered rationing system, service stations offering subsidized gasoline are largely closed, but those that offer the fuel in US dollars are still open, according to the private-sector fuel chamber Fenegas.