Paraguaná Refinery Complex Explained

Paraguaná Refinery Complex
Location Map:Venezuela
Country:Venezuela
State:Falcón
City:Punto Fijo, Punta Cardón and Maracaibo
Coordinates:11.7467°N -70.195°W
Operator:Petróleos de Venezuela
Owner:Petróleos de Venezuela
Capacity Bbl/D:940000
Ref Units:Amuay Refinery, Cardón Refinery and Bajo Grande Refinery

The Paraguaná Refinery Complex (Spanish; Castilian: Centro de Refinación de Paraguaná) is a crude oil refinery complex in Venezuela. It is considered the world's second largest refinery complex, just after Jamnagar Refinery (India). The Paraguaná Refinery Complex was created by the fusion of Amuay Refinery, Bajo Grande Refinery and Cardón Refinery. The Paraguana Refinery Complex is still the largest refinery in the Western Hemisphere.[1] As of 2012, it refined 955koilbbl/d.[2] The complex is located in the Paraguaná Peninsula in Falcón state (Amuay and Cardón refineries) and the western coast of Lake Maracaibo in the Zulia state (Bajo Grande Refinery).[3] The complex accounts for 71% of the refining capacity of Venezuela and it belongs to the state-owned company Petróleos de Venezuela (PDVSA).[4]

History

The Cardón Refinery of Shell started operations in 1949 with capacity to refine 30koilbbl/d. It currently handles 305koilbbl/d.[4] The Amuay Refinery was established by Creole Petroleum in 1950. It started having a capacity of 60koilbbl/d and nowadays it can refine 645koilbbl/d.[2] The Bajo Grande Refinery, built in 1956 by Richmond (now Chevron), has the capacity to refine 16koilbbl/d.[4]

In 1997, a joint venture of BOC and Foster Wheeler built a hydrogen production facility next to the Amuay refinery. This hydrogen facility was the largest in South America.

Iranian state firms were negotiating to repair the refinery complex.[5]

Incidents

Since president Hugo Chávez fired 18,000 PDVSA employees and replaced them with avowed loyalists of his own party, PDVSA has suffered from a series of safety and productivity problems.[6] [7]

In 2003, two workers were injured in an explosion at an electrical substation at the Amuay refinery. In 2005, six accidents happened, including an explosion in November 2005, which killed five workers and injured 20. In 2006, five accidents happened which killed three and injured five workers.[8] In the same year, the 54000oilbbl/d catalytic reformer unit was temporarily shut down due to a fire in a furnace 'blew out'.[9]

In March 2011, a fire that broke out at the hydrodesulphurization unit 4 (HD4) of Amuay refinery; however, the fire was out shortly and the refinery continued operating.[10] In 2012, a distillation unit of the Amuay refinery was briefly stopped due to fire.[8] In March 2012, the Cardón refinery was shut for 8 hours due to air supply fault.[11]

2012 explosion

See main article: Amuay tragedy. On 25 August 2012 at 01:11 (05:41 GMT), an explosion caused by the ignition of a leaking gas at the Amuay refinery killed 48 people, primarily National Guard troops stationed at the plant, and injured 151 others.[12] A 10-year-old boy was among the dead.[13] [14] Three days of national mourning was declared by President Hugo Chávez.[15] He also ordered a probe into the cause of the fire and told his cabinet by telephone that "[this] affects us all, the great Venezuelan family, civilian and military. It's very sad, very painful."[16]

According to PDVSA Vice-President Eulogio Del Pino a leak of propane and butane gas was detected an hour before the blast. However, the contingency plan was not implemented.[17] No operating units were reported damaged by the blast but three storage tanks were burning.[3] All three burning storage tanks were extinguished by 28 August 2012.[18]

In addition to the refinery, more than 1,600 homes were damaged by the shockwave. President Chávez said he was creating a US$23 million fund for clean-up operations and a replacement of destroyed homes.[18] He said that "60 new homes were ready for affected families to move into, 60 more would be finished soon, and a further 137 houses would be handed over next month." He also rejected claims that PDVSA might be responsible for the disaster.[19]

According to president Chávez, the plan was to restart the facility by 31 August.[20] Energy Minister Rafael Ramírez said that PDVSA had ten days' production stockpiled and production at other facilities could be increased, and there would be no "major effects" on oil exports.[21] Pricing of gasoline futures in the United States increased by 3.15% due to the incident and threat of Hurricane Isaac.[22]

Venezuelan presidential candidate Henrique Capriles Radonski criticized PDVSA management for their poor safety record and forwarded lack of maintenance as a cause of the accident. President Chávez, who claimed that it was too early to identify the cause, as well as minister Ramírez, said that Capriles did not "know what he's talking about". However, the Secretary-General of the United Federation of Oil Workers Iván Freites blamed the government for a "lack of maintenance and investment" in the oil industry and stated these as the main causes of the incident.[23] He recalled that the union has complained since 2011 about problems with damaged equipment, lack of spare parts and other unsafe conditions.[24]

Locations

Name Coordinates
Amuay Refinery
Cardón Refinery
Bajo Grande Refinery

See also

External links

Notes and References

  1. Book: Hiscock , Geoff . John Wiley & Sons. Earth Wars: The Battle for Global Resources. 88. 2012. 9781118152911.
  2. News: Reuters. Venezuela struggles with refinery blaze after deadly blast . Marianna. Parraga . Sailu . Urribarri . 26 August 2012 . 27 August 2012.
  3. News: Deadly explosion rocks Venezuelan refinery . . . 2012-08-27 . 2012-08-28.
  4. Web site: PDVSA. Centro de Refinación de Paraguaná. Paraguaná Refining Centre. Spanish. 25 August 2012.
  5. News: Mircely Guanipa . Marianna Parraga . Tibisay Romero . Exclusive: After revamping Venezuela's smallest oil refinery, Iran to fix the largest . May 25, 2022 . Reuters. May 23, 2022.
  6. News: Venezuela's oil industry: Spilling over . 29 August 2012. The Economist. 18 February 2012.
  7. News: Venezuela's economy: Oil leak . 29 August 2012. The Economist. 26 February 2011.
  8. News: . Incidents and accidents involving Venezuela's PDVSA . 25 August 2012 . 26 August 2012.
  9. News: Bloomberg . PDVSA Paraguana Refinery Venezuela . 19 April 2006 . 25 August 2012.
  10. News: . Pdvsa reports normal operation in Paraguaná refining complex . 15 March 2011 . 25 August 2012.
  11. News: . Two Venezuelan refineries temporarily shut after system faults . Sailu . Urribarri . 10 March 2012 . 26 August 2012.
  12. News: . A devastating fire at Venezuela's main oil refinery, spread Monday . Lissy . De Abreu . Petroleumworld . 28 August 2012. 28 August 2012.
  13. News: Associated Press. Refinery blast kills 39 in Venezuela, dozens hurt . . Ian. James . 25 August 2012 . 25 August 2012.
  14. News: At Least 39 Killed in Blast at Refinery in Venezuela . 25 August 2012. . William . Neuman . 25 August 2012. Associated Press.
  15. News: BBC News. Venezuela: Chavez orders Amuay refinery blast probe . 26 August 2012. 25 August 2012.
  16. News: Al Jazeera. Probe ordered into Venezuela refinery blast . 26 August 2012. 25 August 2012.
  17. News: . Emergency plan in the refinery presumably failed . Roberto . Deniz . 28 August 2012 . 28 August 2012.
  18. News: Reuters. Venezuela fire-fighters struggle with refinery blaze . Marianna . Parraga . Sailu. Urribarri . 28 August 2012 . 28 August 2012.
  19. News: Reuters. Chaos, demands for answers after Venezuela refinery blast. Marianna . Parraga . Sailu . Urribarri . 2 September 2012. 3 September 2012.
  20. News: Al Jazeera. 'Fire put out' at one Venezuela refinery tank . 28 August 2012. 28 August 2012.
  21. News: Reuters. Venezuela: refinery to restart in two days after fire . Marianna . Parraga . 26 August 2012 . 27 August 2012.
  22. News: Venezuela refinery could restart Friday . Marianna . Parraga . 27 August 2012 . 28 August 2012 . Reuters.
  23. News: Sindicato acusó al gobierno . Tragedy in Amuay: union accused the government . Spanish . 25 August 2012 . Infobae . 26 August 2012 . dead . https://web.archive.org/web/20120829064534/http://america.infobae.com/notas/56917-Tragedia-en-Amuay-sindicato-acuso-al-gobierno . 29 August 2012.
  24. News: Venezuelan Government Criticized in Deadly Refinery Blast . 27 August 2012. . William . Neuman . 27 August 2012.