Venezuela to Invest $600 Million in Paraguay’s Villa Elisa Refinery

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Researched by Industrial Info Resources (Sugar Land, Texas). During last week’s first South American Energetic Summit, Paraguay’s President, Nicanor Duarte, stated that Venezuela’s state owned oil company, PDVSA, and Paraguay’s Petropar signed an agreement to install a high technology fuel oil refinery.

The $600 million investment will be carried out in Petropar’s Villa Elisa Refinery, located in Asuncion, Paraguay. This plant has only one 7,500 b/d primary distillation unit which has not been working since September 2005 due to oil supply problems. According to Petropar’s President, Alejandro Takahasi, this project implies the construction of a complex plant since it will process 35,000 b/d of Venezuela’s heavy crude oil.

PDVSA and Petropar’s project to reopen the Villa Elisa refinery would put an end to Paraguay’s dependence on its neighboring countries, from which it imports all the fuel oil it consumes. However, experts agree that it may tie Paraguay to the need of Venezuela’s heavy oil because once the project is complete; they will not be able to process any other type of crude oil.

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