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Venezuela's refinery woes send fuel imports soaring: internal documents

Reuters 

By Parraga

(Reuters) - Venezuela this month plans to import over 300,000 barrels per day (bpd) of refined products to ease domestic fuel shortages caused by hobbled refineries and need to prioritize exports, according to internal documents seen by

The country with the world's largest crude reserves this year has not been able to make enough fuel to meet local demand and fulfill supply contracts with customers, including those under with and China, the documents showed.

From January through November, state-run firm bought 19,000 bpd of crude mostly to feed its in Curacao and 234,000 bpd of refined products, including naphtha for diluting its extra heavy output, gasoline, diesel for power generation and components to make motor fuel.

The 253,000 bpd of total imports so far this year represent an all-time record and a 40-percent increase compared with the 180,250 bpd bought last year, according to internal data analyzed by

The purchases, which have expanded despite PDVSA's cash constraints, have been negotiated almost entirely through swaps with fuel providers and traders, which receive Venezuelan crude and residual fuel, according to the data, a employee and traders involved in the deals.

"Since February, we have not paid a single imported cargo with cash. We are exchanging the imported fuel for (Venezuelan) asphalt, virgin naphtha, natural gasoline, fuel oil, residual crude, whatever we have," said the PDVSA employee who could not be identified because the information is private.

(Reporting by Parraga; Editing by and Marguerita Choy)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, December 05 2018. 21:40 IST
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