Trading houses that recently obtained U.S. authorization to engage in Venezuelan oil shipments are taking steps to load and export liquefied petroleum gas (LPG) as part of a broader 50-million-barrel supply arrangement between Caracas and Washington, according to two sources and a shipping document seen on Monday.
Vitol and Trafigura were the first companies this month to receive U.S. licenses to manage supplies under the $2 billion flagship agreement. The licenses aim to enable the removal of inventories that built up after an oil blockade was imposed on Venezuela in December. Shipping data show the trading houses have already exported roughly 10 million barrels of Venezuelan crude since receiving permission to operate under the deal.
Alongside crude shipments, traders are preparing to move both residual fuel oil and LPG. Residual fuel oil is produced in surplus as a byproduct of processing Venezuela's extra heavy crude at its refineries. By contrast, Venezuela has not had an LPG surplus for years because domestic output historically went entirely to meet local consumption.
Interim President Delcy Rodriguez, who also serves as the country’s oil minister, indicated earlier this month that Venezuela would begin exporting LPG once domestic fuel demand was fully satisfied from local production last year. The sources and the shipping document point to operational preparations that align with that statement.
Ship tracking information shows the Singapore-flagged vessel Chrysopigi Lady, chartered by Trafigura, was approaching Venezuela’s Jose port on Monday to pick up an LPG cargo, according to LSEG ship data. Trafigura and state-run PDVSA did not immediately reply to requests for comment.
The unfolding activity reflects a combination of regulatory clearance and logistics coordination by trading houses to move a mix of crude, residual fuel oil and now LPG. The data and statements cited suggest the initial phases of the export program are underway, with traders mobilizing vessels and paperwork to execute shipments included within the supply deal.
Context and next steps
- Traders have moved crude volumes already, and are now preparing to export refined byproducts included in the deal.
- Operational confirmation remains limited pending responses from trading firms and the Venezuelan oil company.