MEDELLIN, Colombia (ICIS)--Petroleos de Venezuela (PDVSA) has signed an agreement with local firms Industrias Cagua and Productos Quimicos LMV to increase the production of lubricants to meet domestic demand, the state-run energy producer said on Thursday.
PDVSA said it would make a “sizeable investment” in the Paraguana Refining Complex (CRP) to expand production of Group III base oils, while Industrias Cagua has agreed to boost its output of lubricants to 26m litres/year starting next week.
The deal will guarantee the “timely, reliable and non-discriminatory supply” of lubricants to the Venezuelan population and the country’s productive sectors, the state company said.
The agreement follows PDVSA’s announcement earlier this month that it had introduced a fifth lubricants line at the CRP’s Cardon refinery.
The new line, which required an investment of Venezuelan bolivars (Bs) 50m ($8m), would increase production capacity at the plant by 150% to 14m litres/month.
The CRP in northwest Venezuela has the capacity to process 940,000 bbl/day. It includes the Cardon, Amuay and Bajo Grande refineries, and produces around 71% of domestic fuel demand, according to information on the company’s website.
($1 = Bs6.29)