July 7, 2006
Venezuela to complete refinery power plants by end-2007: official

(Platts Commodity News) - "Power shortages and electricity interruptions at Venezuela's refineries should be overcome by the end of 2007 as the state power company Cadafe completes two new power plants to supply the oil industry, Cadafe's president said.

'We are working very closely with (state oil company) PDVSA to improve electricity reliability at the refineries,' the official, Nervis Villalobos, told reporters at a press conference.

Villalobos said Cadafe is already building the 300 MW Alberto Lovera power plant at a cost of $140 million close to the 200,000 b/d Puerto La Cruz refinery in eastern Venezuela. The plant is due to be completed by the end of next year and some of its generation will also go to nearby towns. The Puerto La Cruz refinery had to be shut down in May because of an electrical fault and further problems were caused June 23 following a minor power loss.

A 450 MW plant, the Josefa Camejo, is also under construction on the Paraguana Peninsula in the western state of Falcón, which will boost the power supply to the 940,000 b/d Paraguana refining complex. The Paraguana refinery suffered from severe power problems last year that caused at least one shutdown, but supply to the region has improved since a new transmission line was completed early this year.

The first turbine at the Josefa Camejo is expected to come online early next year, with the entire plant due to be completed also by the end of 2007, Villalobos said. The plant will initially burn diesel oil, but will also be able to run on natural gas.

Although there is currently a natural gas shortage in western Venezuela, development of offshore fields in the nearby Rafael Urdaneta project should provide the 120,000 Mcf/d needed for the refinery by the end of this decade, authorities have said.

PDVSA is paying for the construction of the new plants but will gradually be paid back by Cadafe through the supply of electricity, which will be discounted from PDVSA's initial investment.

Villalobos said Cadafe and PDVSA are also considering joint construction of a new power plant for the aging El Palito refinery in Carabobo state as well as upgrading the transmission line to the refinery.

Cadafe also plans to install a new plant for PDVSA's planned 50,000 b/d refinery at Caripito in northeastern Venezuela and build a transmission line to supply the planned 400,000 b/d refinery in Cabruta on the Orinoco River.

A third refinery that PDVSA wants to build, located in the southwestern state of Barinas, will be supplied by the Termobarrancas power plant that is using natural gas from the Barrancas gas field. The plant is currently operating a temporary 80 MW turbine but will eventually increase to 450 MW".