(Argus, 19.Apr.2020) — Raizen has suspended operations at its 110,000 b/d Buenos Aires refinery in response to the plunge in oil demand caused by coronavirus restrictions.
Raizen, a joint venture between Shell and Brazilian energy and logistics conglomerate Cosan, halted crude processing on 17 April after running out of storage.
The company says fuel demand has collapsed by 80pc after Argentina’s government issued stay-at-home orders on 20 March.
“It is important to note that the stock currently accumulated in our refinery’s tanks and in storage areas in other parts of the country are sufficient to meet current demand,” Raizen said.
The company emphasized that the move is temporary and production will resume once demand recovers.
Other areas of the refinery, including the port and the dispatch of fuel trucks, will continue operating.
Argentina’s refineries have been running at minimum levels in recent weeks.
Raizen’s Buenos Aires refinery is the second largest in Argentina after state-controlled YPF’s 189,000 b/d La Plata refinery, which is also located in Buenos Aires province.
Raizen bought all of Shell’s downstream assets in Argentina, including the refinery, in 2018 for $916mn in cash as part of a global $30bn divestment plan.
By Daniel Politi
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