Venezuela's Refining Struggles Amid Recovery Efforts

Venezuela's refining network is currently operating at approximately 35% of its total capacity of 1.29 million barrels per day, an improvement from last year's 20-25%, but still insufficient to fully meet the rising domestic demand for fuel.

The South American nation's refineries, run by the state-owned energy company PDVSA, are often hampered by persistent power outages and technical malfunctions, leading to limited fuel availability for vehicles, power facilities, and households. Despite previous fuel rationing, the Amuay, Cardon, El Palito, and Puerto la Cruz refineries collectively processed around 450,000 barrels per day of Venezuelan crude this week. PDVSA officials revealed that efforts are underway to maintain essential gasoline-producing plants operational.

To bolster domestic fuel production, Venezuela has, since January, taken advantage of new U.S. licenses to import American naphtha, used both to dilute Orinoco's extra-heavy oil and produce high-octane gasoline. Concurrently, the state company is adapting its crude upgraders in the Orinoco Belt to ensure stable feedstock for its refineries.