Venezuelan PDVSA's refineries to run at 43 pct capacity in March
HOUSTON, (Reuters) - Venezuelan PDVSA's refineries will operate at 43 percent of their total capacity in March due to a lack of spare parts, light crude and feedstock, according to an internal document from the state-run firm seen by Reuters.
The company's refineries in Venezuela and the Caribbean have been hit by the OPEC-member's oil output decline, leaving PDVSA short of the crude grades its facilities need to produce fuels for the domestic market and for export.
A severe lack of cash stemming from export and production declines has led to delays in buying spare parts and equipment for needed maintenance, while limiting the volume of imported products, diluents and feedstock the firm can afford.
PDVSA's refining network plans to process 701,000 barrels per day of Venezuelan and imported crude next month, a slight increase versus an average of 660 Mbpd in March last year. That is still low compared to its total installed capacity of 1.62 MMbpd, including the Isla refinery in Curacao.
The Venezuelan domestic market's fuel consumption, which surpassed 700 Mbpd a decade ago, has declined in recent years amid a long economic recession, hyperinflation and lack of basic medicine and food, which are forcing Venezuelans to skip meals and leave the country.
PDVSA estimates the domestic market will consume some 425 Mbpd in March. But because of its refining system's low operating level, PDVSA's declining output and oil-for-loan pacts requiring the firm to export fuels to repay debts, the company will still require 293,200 bpd of imported products, diluents and crude in March, the report said.
Last year, Venezuela faced intermittent shortages of gasoline and other fuels.
PDVSA has ramped up its requests to buy imported crude and fuels on the open market since December. Last week it awarded tenders to buy Russian oil, gasoline blend stock, catalytic naphtha, vacuum gasoil, diesel and components for gasoline, according to offers seen by Reuters.
CONSTRAINTS
The 655 Mbpd Amuay refinery, Venezuela's largest, will process 303 Mbpd of crude next month due to lack of spare parts and equipment malfunctions, the report said. That volume includes 35 Mbpd of upgraded oil coming from the Petropiar joint venture with U.S. oil firm Chevron Corp.
Amuay's flexicoker, delayed coker, hydrotreater, alkylation unit and one of its crude distillation units are expected to remain out of service, while its fluid catalytic cracker (FCC) and two other distillation units will operate with limitations, the document said.
At the 310 Mbpd Cardon, two crude distillation units will remain under maintenance, while two hydrotreaters, the alkylation units, the hydrodesulfurization unit (HDS) and the catalytic cracker will operate with restrictions due to lack of input, limiting crude processing to 110 Mbpd.
Venezuela's two smallest refineries, the 187 Mbpd Puerto la Cruz and the 146 Mbpd El Palito, will also operate with constraints due to insufficient feedstock and lack of spare parts, according to the report.
"We are considering importing crude for El Palito refinery to maintain in service the distillation and medium conversion units," the report said.
El Palito is expected to process 85 Mbpd and Puerto la Cruz will process 146 Mbpd in March.
The Isla refinery in Curacao will process 56 Mbpd in March due to maintenance work planned to finish in mid-April at one of crude distillation units, the alkylation unit, the FCC, the hydrotreater and the reformer. Most of the crude input will come from imports, according to the document.
(Reporting by Marianna Parraga Editing by Tom Brown)
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