Power outage forces Venezuela's largest refinery to shut down
Venezuela's Amuay Refinery Shuts Down After Earthquake-Triggered Power Outage
A widespread power crisis following two deadly earthquakes has forced the 645,000-bpd Amuay refinery offline, raising concerns about Venezuela's domestic fuel supply.
• Venezuela's largest refinery, the 645,000-bpd Amuay, shut down due to a power outage following two deadly earthquakes.
• At least 1,450 people have been killed in the quakes, which have also disrupted power across industrial facilities in western Falcon State.
• Amuay was processing approximately 137,000 bpd of crude before the outage.
• The smaller El Palito refinery (146,000 bpd) and the neighbouring Moron Petrochemical Complex remain unable to fully restart.
• Venezuela's crude exports and output levels are reported unaffected, but domestic fuel supply could fall short when normal economic activity resumes.
Power Outage Forces Amuay Offline
MONTREAL (Oil Monster): A power outage on Sunday forced the shutdown of Venezuela's largest refinery — the 645,000-barrel-per-day Amuay facility — according to workers at the site. The outage is the second such incident at a Venezuelan refinery following two deadly earthquakes that have struck the country.
The South American nation has been struggling to supply electricity to industrial plants, refineries, businesses, and citizens in the wake of the quakes, which have left at least 1,450 people dead. Prior to the earthquakes, Amuay — a key facility for domestic fuel distribution — was processing approximately 137,000 bpd of crude oil.
Workers also cited insufficient water supplies for some power plants and industrial facilities in western Falcon State as a contributing factor to the ongoing operational disruptions at the refinery.
Venezuela's Refineries Boost Processing to 35% of Capacity
El Palito and Moron Complex Also Affected
The smaller 146,000-bpd El Palito refinery and the neighbouring Moron Petrochemical Complex, both located in Venezuela's central region, have also been unable to fully resume operations due to the unstable power supply, according to separate sources familiar with the situation.
Crude Exports Unaffected — But Domestic Supply at Risk
Venezuela's oil ministry has stated that the earthquakes did not impact the country's crude production levels or exports — the primary source of national revenue. However, officials and industry sources warn that domestic output of fuel and petrochemicals may not be sufficient to meet demand once normal economic and industrial activity resumes after the disaster.
The ability of Amuay and related facilities to sustain operations in the coming days will be critical to whether Venezuela can avoid a domestic fuel shortfall.
Frequently Asked Questions: Venezuela Refinery Shutdown
Why did the Amuay refinery shut down? A power outage on Sunday forced the 645,000-bpd Amuay refinery to halt operations. Workers attributed the outage to the power disruptions caused by two recent deadly earthquakes in Venezuela.
How much crude was Amuay processing before the shutdown? The Amuay refinery was processing approximately 137,000 barrels per day of crude oil before the earthquakes disrupted operations.
Which other Venezuelan energy facilities have been affected? The 146,000-bpd El Palito refinery and the neighbouring Moron Petrochemical Complex in central Venezuela have also been unable to fully restart amid the unstable power supply.
Have Venezuela's crude oil exports been affected? According to Venezuela's oil ministry, crude production levels and exports have not been affected by the earthquakes. Exports remain the country's main source of revenue.
What is the risk to Venezuela's domestic fuel supply? Officials warn that if the refineries and related facilities cannot sustain operations, domestic fuel and petrochemical output may not be enough to meet demand once people return to work following the earthquakes.
Courtesy: www.reuters.com