PDVSA offers Bahamas terminal for US heating oil storage
The US could use facilities in the Bahamas belonging to Petroleos de Venezuela SA (PDVSA) to store heating oil against possible supply shortfalls this winter, said Hector Ciavaldini, president of the Venezuelan state oil company. Recently there has been much concern over lower levels of heating oil in storage than average, prompting many to speculate about shortages this winter, particularly in the northeast US.
CARACAS�The US could use facilities in the Bahamas belonging to Petroleos de Venezuela SA (PDVSA) to store heating oil against possible supply shortfalls this winter, said Hector Ciavaldini, president of the Venezuelan state oil company.
Concern about possible heating oil shortages in the US Northeast this winter has prompted the Clinton Administration to establish a temporary 2 million bbl distillate stockpile (OGJ Online, July 20, 2000).
Ciavaldini said PDVSA's Bahamas Oil Refining Co. International Ltd. (BORCO) terminal facilities in Freeport, Bahamas, could be available. The firm said in April it planned to sell the facility (OGJ Online, Apr. 17, 2000).
He said, "We want to contribute in minimizing the possible negative impact that an eventual shortage of heating oil could have on the US community this coming winter.''
Ciavaldini visited Washington, DC, and New York this week to discuss opportunities for cooperation between Venezuela and the US. He plans to meet with the US Department of Energy Sept. 21 to discuss the proposal.
PDVSA said they will "discuss the main technical aspects of this initiative, including investments required to prepare the BORCO facilities."
BORCO, which PDVSA bought in 1990, operates a terminal with a 20 million bbl crude and products storage capacity. PDVSA said 10.2 million bbl is in use, of which 4 million is crude storage, 4.7 million fuel oil, and 1.5 million distillates and gasoline.