PdV eking out a fraction of gasoline demand

Venezuelan state-owned PdV's 940,000 b/d CRP refining complex is currently producing about 32,000 b/d of gasoline and 30,000 b/d of diesel, according to a daily operations report seen by Argus.

The technical report is a closely watched indicator of PdV's halting progress in tackling a severe gasoline shortage across Venezuela, where many service stations have shut down because they have no fuel to sell.

The only CRP units currently in operation include distillation unit 4 that is processing 85,000 b/d of crude at the 635,000 b/d Amuay refinery, and distillation unit 1 processing 55,000 b/d of crude at the 305,000 b/d Cardon refinery. The two refineries, located on the Paraguana peninsula in western Venezuela, are operated by PdV as a single system.

According to the 7 September report, a vacuum unit at Cardon is operational, but the refinery's 86,000 b/d fluid catalytic cracker (FCC) is still undergoing repairs and cannot be restarted until PdV builds up sufficient vacuum gasoil (VGO) stocks to sustain operations.

A Cardon manager tells Argus that PdV "tentatively hopes" to complete the FCC's repairs by early October.

Cardon's 54,000 b/d naphtha reformer unit is also undergoing repairs. A new attempt to restart it is unlikely for another three weeks, pushing PdV's deadline for resuming significant gasoline production at the CRP into early October, the report indicates.

The CRP is currently the sole source of Venezuelan fuel, as the rest of PdV's 1.3mn b/d refining system is mostly off line.

The 140,000 b/d El Palito refinery in Carabobo state remains at high risk of causing major oil spills if its distillation unit and 61,500 b/d FCC are restarted because of cracked pipes and damaged heat exchangers.

All of PdV's efforts to restore fuel production capacity are focused on the Cardon refinery, the report notes.

In Venezuela's currently depressed economic conditions, demand for gasoline is around 110,000 b/d and diesel 100,000 b/d.

In contrast to gasoline, diesel has not suffered the same degree of shortages, thanks to an exception to US oil sanctions for diesel imports on humanitarian grounds. But the US is currently pushing to cut off the exception by the end of October.

The Venezuela government will not consider easing stringent fuel rationing measures in effect since March until PdV manages to "at least double gasoline and diesel production," an oil ministry official said.