Ecuador restarts Esmeraldas refinery after quake and fire repairs
State-owned Petroecuador says the facility is expected to boost national fuel output, cut imports, and improve refinery profitability.
IMAGE: Esmeraldas refinery. EP Petroecuador.
Petroecuador has resumed operations at the Fluid Catalytic Cracking (FCC) unit at the refinery in the first week of December 2025, following repairs to damage caused by an April earthquake and a fire in late May.
The Esmeraldas refinery is Ecuador's largest, crucial for national fuel supply.
The restart follows 188 days of maintenance work and is part of interventions ordered by President Daniel Noboa to stabilise and strengthen the country’s refining system.
"Supplies had been tight, so the restart is definitely good news. Availability is expected to improve, and import dependence will naturally ease," a local supplier told ENGINE.
The company said the FCC unit’s reactivation will help meet operational targets, support fuel supply in the surrounding region, and improve refined-product output nationwide.
The FCC unit produces light hydrocarbon gases used as refinery fuel gas, LPG, high-octane treated naphtha (a raw material for gasoline production), and cycle oils used to prepare fuel oil.
With the restart, the unit will produce about 4,612 b/d of LPG and 7,488 b/d of treated naphtha, Petroecuador said.
The refinery will also reduce LPG imports for its own consumption by about 3,000 tonnes a month, according to the company.
HSFO had typically traded for cheaper in Ecuador given its large domestic production, but supply tightness following the closure pushed Guayaquil into sustained premiums against US hubs.
Over the past 5–6 months, Guayaquil's HSFO traded at a $20–40/mt premium to Houston consistently. Against New York, the spread was more volatile, where it was at a discount of $20–30/mt in late-July, before flipping to near-parity or modest premiums of $10–35/mt from mid-August through October.
With the resumption of the refinery's operations, HSFO prices in Ecuador are expected to come down and stabilize.
By Gautamee Hazarika
Please get in touch with comments or additional info to news@engine.online
