Eni, Pequiven restart Venezuelan methanol plant

Italy's Eni and Venezuelan state-owned Pequiven have restarted methanol production at the Supermetanol plant, according to industry sources.

The 800,000 t/yr plant, in the Jose industrial complex of eastern Venezuela, had been down since the second quarter of 2019 and was gradually brought back on line in early September after repairs to a leaky natural gas line and a steam valve. A boiler installed at an idle adjacent octane plant is operating to support Supermetanol.

The current level of production at the plant is unclear. Eni and Pequiven each holds 50pc of Supermetanol, which was built in the early 1990s and started commercial operations in 1995.

Neither Pequiven nor Eni responded to requests for comment. An official reached by telephone at the plant declined to comment.

Supermetanol is one of two methanol production complexes at Jose that use natural gas feedstock supplied by PdV Gas, a subsidiary of Venezuela's state-owned oil company PdV.

Most other Jose plants, including three of four heavy crude upgraders led by PdV, are not in service, leaving methanol as a stand-out exception in Venezuela's otherwise collapsed industrial base.

The other methanol producer at Jose is Mitsubishi-operated Metor, which recently resumed operations at its two plants after a pandemic-related shutdown of around one month. The Metor complex has capacity to produce 1.6mn t/yr of methanol, mainly for export.

The main shareholders in Metor are Mitsubishi and Mitsubishi Gas Chemical with 23.75pc stakes each. Pequiven holds 37.5pc.

Eni on the spot

Supermetanol is among Eni's lesser known Venezuelan assets. The Rome-based company has drawn recent attention as PdV's minority partner in PetroSucre, an offshore oil development where the faltering Nabarima floating storage vessel is tethered. Eni has said it is awaiting clearance from US sanctions authorities to transfer crude out of the Nabarima to allow for repairs.

Eni is also a steady producer of Venezuelan crude as payment for its supply of natural gas from the Perla offshore field to PdV, with diesel provided in return as a way to settle the transactions. Eni's Perla partner is Spain's Repsol, which engages in similar diesel transactions to recover debts from PdV. The transactions are permitted under an exemption to the sanctions, but the US is seeking to close the exception by the end of October.

Among Eni's other Venezuelan assets is a 40pc stake in the Junin 5 block in the Orinoco heavy oil belt.

By Patricia Garip