Petroecuador evaluates refining crude in Peru to address fuel shortages

Ecuador's state oil company, Petroecuador, is evaluating strategic agreements to process its crude oil in foreign refineries to address domestic fuel shortages. The company is considering a “swap” mechanism where Ecuadorian crude is sent abroad in exchange for refined products such as diesel, gasoline, and liquefied petroleum gas (LPG).

Peru has emerged as a primary candidate for these partnerships due to its refining capacity and the compatibility of its facilities with Ecuadorian crude. Specifically, the Nueva Refinería Talara is noted for its ability to process up to 95,000 barrels per day.

This initiative aims to reduce Ecuador's heavy reliance on fuel imports. Currently, the country imports approximately 73% of its gasoline, over 80% of its diesel, and nearly 92% of its LPG. Petroecuador's acting general manager, Sebastián Maag, indicated that the company is seeking regional partners with the appropriate infrastructure to bridge the gap between local production and domestic demand.