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Citgo, Aruba reach deal to transfer control of refinery to island government

March 03/2020

MOSCOW (MRC) -- U.S. refiner Citgo has reached an agreement with Aruba to transfer control of the San Nicolas refinery to the islands government, Citgo said, after the two parties last year suspended a contract to overhaul the facility, said Hydrocarbonprocessing.

Citgo, a unit of Venezuelan state oil company Petroleos de Venezuela [PDVSA.UL], has been under the control of the South American countrys opposition for more than a year after Washington slapped sanctions on PDVSA in a bid to oust socialist President Nicolas Maduro.

That transition left the future of the 209,000 barrel-per-day refinery uncertain. Citgo and Aruba in 2016 reached a 25-year, USD685 million deal to refurbish and reopen the facility, which had been idled since 2012, but little progress has been made.

Citgo in a statement said the transfer agreement was the first step in a process that would result in the Aruba government taking full control of the refinery by March 16, following approval by the islands parliament.

Arubas government has said it is looking for outside candidates to take over the refinery.

Citgo Petroleum Corporation, a separate entity, would continue to supply fuel to the islands airport and gas stations, Citgo said.

As informed before, in May 2019, Citgo restarted larger reformer at its US Corpus Christi 52,000 bbl/day refinery with capacity 225,000 benzene; 180,000 toluene tonnes/year.

Benzene is a feedstock for the production of styrene monomer (SM), which, in its turn, is a feedstock for manufacturing polystyrene (PS).

According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 46,260 tonnes in December 2019, up by 8% year on year. The estimated consumption of PS and styrene plastics totalled 500,660 tonnes in 2019, down by 1% year on year.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, petrochemistry, Citgo petroleum corporation.
Category:General News
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