Venezuela to expand refining capacity by 20%
10/23/2014 12:00:00 AM
PDVSA’s refining chief Jesus Luongo announced that the present refining capacity of 1.3 MMbpd will be increased by 265 Mbpd.
No details on the timeline for the new construction were released.
The expansion project will double the capacity of the El Palito refinery from 146 Mbpd to 292 Mbpd. The project includes the expansion of the 187-Mbpd Puerto la Cruz plant by 20 Mbpd to 25Mbpd of new throughput capacity.
PDVSA also plans to optimize the Paraguana Refining Center (CRP), a 965 Mbpd refining complex, which is the world’s second largest refinery after Reliance’s Jamnagar refinery. This complex experienced a major explosion and fire in 2012.
Part of Venezuela’s problems are that the country has invested in upstream assets and has not fully developed its downstream operations.
Due to a string of problems with the present refining network, Venezuela is importing transportation fuels and refined products to satisfy domestic demand.
Fuels are heavily subsidized in this nation.
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