The tanker Fortune became the first of five Iranian tankers carrying fuel to Venezuela which has docked at a port serving El Palito refinery, according to the country’s oil minister on Monday. Meanwhile, tanker tracking data showed that the second tanker, the Forest, had entered Venezuelan waters by the same day, while the remaining three were crossing the Atlantic ocean.
Venezuela’s state-owned energy company PDVSA has a 1.3 million bpd refining network. However, underinvestment, lack of maintenance, and US sanctions have crippled its ability to produce fuels, causing severe fuel shortages in the oil-rich country. Sources said that the White House is currently considering a response to the fuel trade between Iran and Venezuela, which are under US sanctions.
According to the governments, Iran is supplying Venezuela with refining equipment and 1.53 million barrels of gasoline. Iranian spare parts have arrived in the South American country and contributed to Venezuela’s increasing crude processing rate, which stood at 215,000 bpd in May, compared to 110,000 bpd in March, industry sources said.
The sources added that Venezuela had restarted a fluid catalytic cracker at the 146,000-bpd El Palito refinery, which is needed for fuel production. They noted that Venezuela’s 187,000-bpd Puerto la Cruz refinery remained shut.
Meanwhile, Iran plans to halt gas condensate exports and instead use it to boost domestic gasoline and naphtha production. Oil minister Bijan Zanganeh on Monday said the export suspension would last during the current Iranian year that ends in March 2021. The Persian Gulf Star and Siraf refineries will process the gas condensates from the giant South Pars gas field.
