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Venezuela struggling to restore thermal power units

  • : Electricity, Oil products
  • 19/04/24

Venezuela´s state-owned utility Corpoelec and state-owned oil company PdV are struggling to restart thermal generating units in the wake of successive catastrophic blackouts triggered by a breakdown of the Opec country's main hydroelectric complex.

Barely 6GW of Corpoelec's 34GW of total installed thermal and hydroelectric generation capacity was operational as of mid-April, according to an internal electricity ministry grid assessment commissioned by new electricity minister and Corpoelec chief executive Igor Gavidia after his 1 April appointment.

Venezuela's grid will be "unstable and vulnerable to major failures and resulting national blackouts for several years until necessary repairs and modernization are completed," the grim report indicates, estimating that up to $15bn of generation and transmission investments are required to restore the grid.

Since the first of the blackouts swept Venezuela on 7 March, most of the country remains with sporadic if any power supply and related municipal water service. Western Venezuela is particularly hard hit.

The April grid assessment reviewed by Argus states that Venezuela needs at least 13GW of electricity to meet current estimated national demand without resorting to supply restrictions.

Corpoelec reported 3GW of operational thermal capacity nationally in early April, with the other 3GW consisting of hydropower generated in Bolivar state by the 10GW Simon Bolivar (Guri) complex and the 2GW Caruachi and 2GW Macagua complexes located downriver from Guri. Hydro assets in the Andean states of Táchira and Mérida are off line, the report adds.

The assessment cautions that with only 16pc of Corpoelec's thermal assets of 19GW currently in service, Venezuela cannot offset new breakdowns of its hydro generation and transmission assets. Corpoelec's decades-old 765kV transmission system linking Guri to the rest of Venezuela has collapsed some 30 times since 2016.

The assessment also warns that Venezuela is at imminent risk of more blackouts that could leave most of the country in the dark for over a month if the only operational transformer feeding the critical 765kV Guri substation breaks down.

Two of the Guri substation's three large-capacity auto-transformers have been out of service since the first blackout on 7 March left 21 of 23 states without electricity for over a week.

"A failure of the Guri substation's only operational auto-transformer could cause a blackout nationally that could last up to 40 days until new transformers are imported and installed," the report adds.

The western state of Zulia, which hosts PdV's oldest fields, is dark for up to 20 hours a day because "only 300MW or 12pc" of its local installed thermal capacity of 2.5GW was operational as of mid-April.

Zulia´s thermal assets include the 1.4GW Termozulia complex near Maracaibo, which is capable of generating only 300MW at best. Idle thermal units in Zulia, including 660MW Ramón Laguna, 266MW Rafael Urdaneta, 61.6MW Casigua, 36MW Santa Barbara, 32MW Concepción and 40MW San Lorenzo, are out of service for lack of parts and feedstock, mainly diesel and natural gas.

Electricity supply for PdV's core operations including its export terminals at the 940,000 b/d CRP refining complex in Falcón and the Jose processing and terminal complex in Anzoátegui state have depended on Corpoelec's fragile grid for nearly a decade as the oil company´s own generation capacity broke down from lack of maintenance.

Since successive blackouts last month disrupted PdV's operations, the company has redoubled efforts to repair and recommission dedicated generation assets in its operational areas, an oil ministry official told Argus. The company has managed to resume tanker loadings at Jose this month, but little progress has been made elsewhere because of the combined impact of structural gas and diesel supply deficits, US sanctions, financial duress and a scarcity of skilled electrical engineers and workers.

PdV owns and operates 31 thermal units with total capacity of nearly 2.9GW, of which 20 units with a combined capacity of 1.7GW are out of service and a remaining 11 with capacity of 1.2GW currently generate only 770MW.

Corpoelec is prioritizing supplies for PdV, but at the expense of supply to urban and rural areas in the interior of the country, and non-oil manufacturing and commercial activities, the electricity ministry said.

Venezuela´s president Nicolas Maduro blames the blackouts on sabotage coordinated from abroad, and several Corpoelec officials have been arrested.


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25/01/15

Q&A: Waste-based biofuel to benefit Dutch bunkering

Q&A: Waste-based biofuel to benefit Dutch bunkering

New York, 15 January (Argus) — With marine fuel greenhouse gas (GHG) emissions regulations tightening, shipowners are looking for financially feasible biofuel options. Argus spoke with Leonidas Kanonis , director for communications and analysis at European waste-based and advanced biofuels association (Ewaba), about biofuels for bunkering. Edited highlights follow. Do you think that the Netherlands government will scrap the HBE-G bio-tickets that it has been allocating for marine fuel for use by ocean-going vessels? HBEs are not disappearing in 2025, and the Dutch system will continue as normal, including HBE-G bio tickets. In 2026, the plan is that HBEs will be scrapped altogether, when the Dutch system switches to an Emissions Reduction Obligation. The Emissions Reduction Obligation would be a transposition of the Renewable Energy Directive (REDIII) spanning all transport sectors and HBEs would not exist under such a system. Annex IX of REDIII lists sustainable biofuel feedstocks for advanced biofuels (Part A) and waste-based biofuels (Part B). Under the proposed REDIII, EWABA is advocating those fuels made from feedstocks listed under Annex IX B, which include used cooking oil and animal fat, be allowed into the sustainability criteria for maritime transport. Allowing only "advanced" feedstocks listed under Annex IX A would put the Dutch bunkering sector at a cost-and-supply disadvantage compared with non-EU ports. The Annex IX B exclusion could also put the Netherlands in danger of not hitting its maritime sector target, which rises from a 3.6pc reduction in GHGs in 2026 to 8.2pc in 2030. Annex IX B biodiesel can bridge the gap while advanced technologies such as ammonia and hydrogen are more widely deployed. The EU imposed anti-dumping taxes on Chinese biodiesel imports in mid-August. What has been the effect on European biodiesel producers? Following the Chinese anti-dumping duties (ADDs), we have seen an uptick in domestic European waste-based biodiesel prices, widening the spread between the end product and the European domestic feedstock itself. On the other hand, on 1 December, the Chinese government cancelled the export tax rebate for used cooking oil (UCO), disincentivizing Chinese exporters and making Chinese UCO more expensive for European buyers. It is still early to say what the trend for 2025 will be, but as an industry we are optimistic about increased European biodiesel production. Over the past two years, our members have been suffering, mostly operating at sub-optimal production levels or forced to shut down production. In 2025, there is reserved optimism that the market will improve due to: the ADDs to Chinese biodiesel, the 2025 FuelEU maritime regulation, and the introduction of the EU Database for Biofuels introduced in 2024, which tracks the lifecycle of biofuels and strengthens transparency. Are there other threats next year that are facing the European waste-based and advanced biofuels producers? Overall challenges for the market would be demand for feedstock from competing industries, largely the sustainable aviation fuel (SAF) market with the introduction of the ReFuelEU mandate, but also competing regions as the US imported huge amounts of waste feedstocks from China last year, while southeast Asian and UAE countries promote their own bio-blending targets. Do you think Donald Trump's presidency would affect Europe's biofuel markets? We expect the Trump administration to possibly limit feedstock imports from outside the US, boosting the sales of local soybean and other crop feedstocks to produce domestic HVO, SAF and biodiesel. At the same time, the US government has noted they will impose duties on imports coming from anywhere, with China experiencing the most considerable level of duties of up to 60pc. For example, an import tax on European and UK biodiesel would mean that more fuel is available to fulfill the European and UK mandates, as the US is also relying on HVO and FAME from Europe and the UK to fulfill its own mandates. Biofuel for bunkering has been a popular low-carbon fuel option among container ship companies. But oil tanker owners and dry bulk carrier owners are slower to embrace biofuels. Do you see this changing? At the moment, most biofuels used in shipping are indeed for container ship companies that could more easily afford higher prices of bio components. The biofuels industry is receiving a lot of interest from tanker or carrier owners but for lower biofuel blends compared to container ship companies. Container vessels are willing to buy higher biofuel blends and are interested in B100. Oil tankers are focusing more on B15 and higher bio blends to comply with the minimum GHG reduction targets possible. But as the GHG reduction targets on the FuelEU rise, this will of course change as well. In 2030, what do you project will be the demand for biofuels for bunkering in Europe? As an estimation, we expect waste biofuels bunkering demand in Europe to surpass 2-2.5mn tons by 2030. Specification-wise, what are some of biofuel properties that ship owners need to look out for? We don't believe waste-based and advanced biodiesel fuel properties have considerable issues for ship operators. Especially for blends up to B30, there is nothing to worry about. For higher blends, viscosity and stability are the ones that I believe are more important. Storage time is also important to consider due to lower oxidative stability of FAME compared with fossil diesel alternatives that could be stored longer term. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

ADB to fund Indonesia $92.6mn for geothermal expansion


25/01/15
25/01/15

ADB to fund Indonesia $92.6mn for geothermal expansion

Singapore, 15 January (Argus) — The Asian Development Bank (ADB) has signed a $92.6mn financing agreement with geothermal power producer Supreme Energy Muara Laboh (SEML) to develop Indonesia's geothermal power capabilities. The funds will go toward the expansion of a geothermal facility at Muara Laboh in West Sumatra, and the construction, operation and maintenance of a new 83MW geothermal power plant, the ADB announced on 14 January. The support will "help Indonesia to meet its clean energy targets and deliver affordable electricity," said the ADB's country director for Indonesia, Jiro Tominaga. The project will also allow Indonesia to enhance its long-term energy security, while reducing greenhouse gas emissions. The finance package consists of $38.8mn from the bank's ordinary capital resources, a $38.8mn "B loan" from Sumitomo Mitsui Banking, and a $15mn concessional loan from the Australian Climate Finance Partnership (ACFP). Indonesia has the world's largest geothermal energy reserves, estimated at 23.1GW, said the ADB. But the country is still heavily reliant on fossil fuels for its energy needs, with coal accounting for 61.8pc of Indonesia's power mix in 2023, while renewables accounted for 19pc. Indonesia's president Prabowo Subianto announced in November that Indonesia intends to retire all coal-fired power plants by 2040, and the government subsequently clarified that it is instead aiming for a coal phase-down . But a phase-out could be possible if the country rapidly increases its share of renewables in the energy mix to 65pc, according to energy think-tank Ember. This would mean a renewable energy target higher than the government's current goal of 75GW by 2040. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Colonial shuts Line 1 due to Georgia spill: Update


25/01/14
25/01/14

Colonial shuts Line 1 due to Georgia spill: Update

Houston, 14 January (Argus) — Colonial Pipeline's main gasoline bearing line may be closed for more than a day as the company responds to a gasoline spill in Georgia detected on Tuesday. "Colonial has taken Line 1 out of service temporarily while we respond to a potential product release," the company said in a notice. "Normal operations continue on the remainder of the system." The spill occurred in Paulding County, Georgia, about 25 miles southwest of Marietta, Georgia. The company said it had crews on site responding to the incident. The company did not provide information on when the line would restart. Market sources said leak was small but it could take up to two days to resume operations. Line 1 has capacity to carry up to 1.3mn b/d of gasoline from Houston, Texas, to Greensboro, North Carolina. Cash prices for US Gulf coast 87 conventional gasoline in the Gulf coast ended Tuesday's session down by 3.19¢/USG at $2.115/USG, reversing gains from the previous session's 14-week high that was driven by higher blending demand. Liquidity fell during Tuesday's trading session with uncertainty over the length of the pipeline shut-down. The pipeline leak did not affect line space trading on Tuesday, which had already been falling. Values saw their sixth session of losses, shedding 0.25¢/USG day-over-day. A trade was reported at -1.5¢/USG, prior to the notice of the pipeline shut down, with no further trades reported for the remainder of the session. By Hannah Borai Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New York to propose GHG market rules in 'coming months’


25/01/14
25/01/14

New York to propose GHG market rules in 'coming months’

Houston, 14 January (Argus) — Draft rules for New York's carbon market will be ready in the "coming months," governor Kathy Hochul (D) said today. Regulators from the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) "will take steps forward on" establishing a cap-and-invest program and propose new emissions reporting requirements for sources while also creating "a robust investment planning process," Hochul said during her state of the state message. But the governor did not provide a timeline for the process beyond saying the agency's work do this work "over the coming months." Hochul's remarks come after regulators in September delayed plans to begin implementing New York's cap-and-invest program (NYCI) to 2026. At the time, DEC deputy commissioner Jon Binder said that draft regulations would be released "in the next few months." DEC, NYSERDA and Hochul's office each did not respond to requests for comment. Some environmental groups applauded Hochul's remarks, while also expressing concern about the state's next steps. Evergreen Action noted that the timeline for NYCI "appears uncertain" and called on lawmakers to "commit to this program in the 2025 budget." "For New York's economy, environment and legacy, we hope the governor commits to finalizing a cap-and-invest program this year," the group said. State law from 2019 requires New York to achieve a 40pc reduction in greenhouse gas (GHG) emissions from 1990 levels by 2030 and an 85pc reduction by 2050. A state advisory group in 2022 issued a scoping plan that recommended the creation of an economy-wide carbon market to help the state reach those goals. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's Bndes grants R480mn to ethanol producer


25/01/14
25/01/14

Brazil's Bndes grants R480mn to ethanol producer

Sao Paulo, 14 January (Argus) — Brazil's Bndes development bank approved R480mn ($79mn) for sugar and ethanol producer CMAA to increase biofuel production in the state of Minas Gerais. The bank will grant R220mn from its Climate Fund to raise the private-sector company's anhydrous ethanol output in its Vale do Pontal sugar and ethanol unit, in Limeira do Oeste city, by around 1,470 b/d. The plant will be able to produce up to 3,650 b/d. With new investments, the Vale do Pontal plant will process 4mn metric tonnes (t) of sugarcane/crop, up from 2.7mn t/crop previously, producing hydrous ethanol, raw sugar and electric power for the Brazilian domestic market. The Climate Fund will be also used to double CMAA's power generation to 68MW. The remaining R260mn will be taken from Bndes' services and machinery program to modernize existing equipment and buy new agricultural machines. CMAA's Vale do Pontal, Vale do Tijuco and Canapolis units are expected to use R50mn, R160mn and R50mn, respectively. These resources can be allocated to buy, sell or produce machines, industrial systems or technological and automation goods, as well as hiring national services and machine imports, Bndes said. The company will also be able to increase issuance of Cbio carbon credits, following the rise in ethanol output. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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