PdV starts unloading Iranian gasoline

The Iran-flagged tanker Forest is discharging 270,000 bl of 87 RON gasoline at state-owned PdV's 140,000 b/d El Palito refinery for distribution mainly to Caracas and the central western states of Carabobo and Yaracuy, two PdV managers at the refinery tell Argus.

The products tanker is the first of three shipments that Tehran dispatched to Caracas in defiance of US sanctions on the two countries.

The Fortune entered Venezuelan waters overnight and will moor at El Palito on 1 October, followed by the Faxon on 4 October.

The Faxon may be directed to PdV's 940,000 b/d CRP refining complex in Paraguana, only a few hours by sea west of El Palito, but a final decision has not been made yet, according to a PdV internal marketing official at corporate headquarters in Caracas.

The three tankers will ease Venezuela's critical gasoline shortage for up to 30 days but strict rationing measures will be enforced, the PdV official added.

Cars will be allotted up to 30 liters per week and pickup trucks will receive up to 40 l per week, the official said.

The Iranian gasoline will be blended with small volumes of gasoline produced at El Palito and the 305,000 b/d Cardon refinery, according to a PdV manager at El Palito.

Blending Iranian gasoline with the locally produced gasoline will dilute sulphur content in the Venezuelan fuel and improve RON quality, the manager said. El Palito expects to start distributing the blended gasoline by 2 October.

Inoperative desulfurization and alkylation units at Cardon and El Palito have limited PdV's ability to produce gasoline that meets the oil ministry's 91 and 95-octane standards for regular and premium unleaded gasoline.

A PdV downstream official in Caracas said El Palito's 61,500 b/d fluid catalytic cracker was restarted yesterday and is currently producing up to 30,000 b/d of roughly 80 RON high-sulfur gasoline.

Cardon's 86,000 b/d FCC is also partly operational, producing about 25,000 b/d of 70-83 RON gasoline, according to PdV.

Iran shipped gasoline as well as alkylate to Venezuela in late May and early June, prompting censure but no action on the part of the US.

Fuel shortages inside Venezuela are among a multitude of grievances that have sparked protests across the country in recent weeks.