Venezuela's Refining Resurgence: Meeting Domestic Fuel Demand Amid Challenges

Venezuela's refining network is operating at about 35% of its capacity, up from last year but still insufficient to meet the growing domestic fuel demand. The state energy company PDVSA struggles with power outages and malfunctions affecting fuel supply, while attempting to maintain key refineries and import U.S. naphtha for support.

Venezuela's refining operations have seen a modest revival, operating at 35% capacity compared to last year's 20-25%. Despite this improvement, state-owned PDVSA continues to grapple with power outages and technical malfunctions, hampering its ability to meet rising fuel demand.

The country's principal refining sites, including Amuay, Cardon, El Palito, and Puerto la Cruz, are reportedly processing 450,000 barrels of crude per day. A recent power blackout temporarily impacted production, but efforts to restore and enhance refining capabilities are ongoing.

PDVSA is also adjusting its crude upgraders in the Orinoco Belt to bolster feedstock supply. Since January, Venezuela has innovated by importing U.S. naphtha to aid in oil processing and gasoline production, utilizing new U.S. licenses issued under the current political climate.

(With inputs from agencies.)