Ecuador’s Imports of Refined Products Surge Amid Refinery Challenges

Ecuador is experiencing a marked increase in diesel and gasoline imports due to ongoing challenges in its refineries, exacerbated by extended maintenance periods.

Share:

Subscribe for unlimited access to all energy sector news.

Over 150 multisector articles and analyses every week.

Your 1st year at 99 $*

then 199 $/year

*renews at 199$/year, cancel anytime before renewal.

Ecuador is facing a significant rise in imports of refined oil products. This trend is attributed to challenges encountered in its refining infrastructure, particularly at the Esmeraldas refinery, the country’s main facility. Recent data highlights that this increase primarily involves diesel and gasoline.

In September, imports of refined products reached 4.1 million barrels, steadily rising to 5 million barrels in October, 5.2 million in November, and 3.7 million at the start of December. This figure may increase further by the end of the month, reflecting the structural difficulties faced by local refineries.

Impact of Extended Maintenance

The Esmeraldas refinery, with a capacity of 110,000 barrels per day and a Nelson Complexity Index of 6.36, saw its utilization rate drop to 32% in August and 43% in October. A prolonged 65-day maintenance period has further aggravated the situation, directly impacting national fuel production.

According to forecasts by S&P Global Commodity Insights, total refinery throughput in Ecuador is expected to decrease by 13.4% in 2024 compared to 2023. These operational constraints underscore the country’s growing reliance on imports.

International Market and Regional Context

Refining challenges are not unique to Ecuador. Several Latin American countries are also experiencing increased demand for imported fuels. This dynamic is putting pressure on international markets. ULSD (ultra-low-sulfur diesel) cargoes bound for Ecuador were recently assessed at $86.89 per barrel, marking a decrease from the $93.37 peak observed on November 21.

Meanwhile, fuel exports from the U.S. Gulf Coast (USGC) are meeting this growing demand, but availability remains tight. Jet-A cargoes have seen their prices rise to $2.091 per gallon as of December 9, reflecting market adjustments to the heightened needs of Latin America.

Economic and Strategic Implications

This growing dependence on imports weighs on Ecuador’s public finances, but it also highlights the need to modernize its refining infrastructure. With fluctuating prices and sustained regional demand, the current situation emphasizes the importance of long-term strategic planning to ensure the country’s energy security.

First suspect linked to the Nord Stream pipeline explosions, a Ukrainian citizen challenged by Berlin opposes his judicial transfer from Italy.
Ukrainian drones targeted a nuclear power plant and a Russian oil terminal, increasing pressure on diplomatic talks as Moscow and Kyiv accuse each other of blocking any prospect of negotiation.
A Ukrainian national suspected of coordinating the Nord Stream pipeline sabotage has been apprehended in Italy, reigniting a judicial case with significant geopolitical implications across Europe.
Russia continues hydrocarbon deliveries to India and explores new outlets for liquefied natural gas, amid escalating trade tensions with the United States.
Azerbaijani energy infrastructure targeted in Ukraine raises concerns over the security of gas flows between Baku and Kyiv, just as a new supply agreement has been signed.
The suspension of 1,400 MW of electricity supplied by Iran to Iraq puts pressure on the Iraqi grid, while Tehran records a record 77 GW demand and must balance domestic consumption with regional obligations.
Beijing opposes the possible return of European trio sanctions against Iran, as the nuclear deal deadline approaches and diplomatic tensions rise around Tehran.
The United States plans to collaborate with Pakistan on critical minerals and hydrocarbons, exploring joint ventures and projects in strategic areas such as Balochistan.
Around 80 Russian technical standards for oil and gas have been internationally validated, notably by the United Arab Emirates, Algeria and Oman, according to the Institute of Oil and Gas Technological Initiatives.
Baghdad and Damascus intensify discussions to reactivate the 850 km pipeline closed since 2003, offering a Mediterranean alternative amid regional tensions and export blockages.
The two countries end 37 years of conflict with a 43-kilometer corridor under American control for 99 years. The infrastructure will transport 50 million tons of goods annually by 2030.
A senior official from the UN agency begins technical discussions with Iran on Monday, the first meeting since June strikes on Iranian nuclear sites.
A free trade agreement between Indonesia and the Eurasian Economic Union is set to be signed in December, aiming to reduce tariffs on $3 bn worth of trade and boost bilateral commerce in the coming years.
The visit of India's national security adviser to Moscow comes as the United States threatens to raise tariffs on New Delhi due to India’s continued purchases of Russian oil.
Brussels freezes its retaliatory measures for six months as July 27 deal imposes 15% duties on European exports.
Discussions between Tehran and Baghdad on export volumes and an $11 billion debt reveal the complexities of energy dependence under U.S. sanctions.
Facing US secondary sanctions threats, Indian refiners slow Russian crude purchases while exploring costly alternatives, revealing complex energy security challenges.
The 50% tariffs push Brasília toward accelerated commercial integration with Beijing and Brussels, reshaping regional economic balances.
Washington imposes massive duties citing Bolsonaro prosecution while exempting strategic sectors vital to US industry.
Sanctions imposed on August 1 accelerate the reconfiguration of Indo-Pacific trade flows, with Vietnam, Bangladesh and Indonesia emerging as principal beneficiaries.

Log in to read this article

You'll also have access to a selection of our best content.

or

Go unlimited with our annual offer: $99 for the 1styear year, then $ 199/year.