Earthquake Strikes Venezuela's Energy Infrastructure: Nation's Largest Refinery Halts Operations Due to Power Outage

According to CCTV News, on the 28th local time, Jorge Rodríguez, President of Venezuela’s National Assembly, announced that the death toll from the powerful earthquake that struck Venezuela on the 24th had risen to 1,450. Reuters reported that Venezuela’s largest refinery—Amuay—halted operations on Sunday due to a power outage. The Amuay refinery is the core component of the Paraguana Refining Center, which has a crude processing capacity of 955,000 barrels per day and a designed refining capacity of up to 645,000 barrels per day. After electricity was restored that evening, workers began restarting production units—particularly the crude distillation units. Meanwhile, the medium-sized El Palito refinery (daily capacity: 146,000 barrels) and the adjacent Morón Petrochemical Complex remain unable to fully resume operations due to persistently unstable power supply. Venezuela’s Ministry of Petroleum stated that the earthquake did not affect the country’s crude oil production or exports; however, it warned that if refineries and related facilities cannot maintain stable operations, domestic fuel and petrochemical product supplies may fail to meet demand once daily life returns to normal post-earthquake. The earthquake has claimed at least 1,450 lives, and Venezuela’s nationwide industrial facilities, refineries, enterprises, and households all face severe challenges to their electricity supply. Chronology of the Power Outage According to media reports citing refinery workers and nearby residents, the Amuay refinery suffered a power outage on Sunday, forcing it to suspend operations. This marks the second refinery plunged into blackout conditions following two recent strong earthquakes.

Shan Hongye | Recommendations for China’s Strategic Response and Confidence-Building Amid Venezuela’s Crisis

Currently, U.S. hegemonic expansion has taken shape as a dual-track strategy—intensifying dominance over Latin America as its ‘backyard’ while simultaneously imposing sanctions and pressure on the Middle East—and is actively pressuring Panama to withdraw from the Belt and Road Initiative (BRI) and obstructing China–Chile space cooperation, aiming to erode China’s influence in the Western Hemisphere. China must therefore implement targeted measures to fortify defenses in key regions and consolidate existing cooperative foundations. Simultaneously, China must rigorously prevent Iran from undergoing a ‘Venezuelanization’—otherwise, years of BRI efforts could be rendered futile. Accordingly, China should further cultivate its image as a ‘reliable strategic partner,’ demonstrating responsible great-power conduct and resolute determination to counter hegemony. Specifically, China can deconstruct the outdated ‘oil = power’ order through intensified promotion of new-energy and hydrogen-energy cooperation, establishing instead a new logic: ‘new energy = development autonomy.’ Through this ‘breaking the old to establish the new’ energy strategy, China can empower its overall response framework. I. Leveraging Multilateral Military Exercises to Reinforce Strategic Resolve The U.S. action exposes its habitual reliance on ‘military intervention to resolve geopolitical issues.’ China must convey strategic resolve via existing multilateral mechanisms, grounded firmly in the principle of ‘non-interference in internal affairs,’ avoiding entrapment in direct confrontation. 1. Capitalize on the BRICS ‘Peace Will-2026’ joint military exercise held in South Africa from January 9–16 (led by China—the first defense cooperation under the BRICS framework), emphasizing core themes of ‘maritime trade route security’ and ‘critical infrastructure protection,’ elevating it into a key signal responding to unilateral intervention and clearly showcasing BRICS countries’ multilateral coordination capacity. 2. During the exercise, invite observers from BRI partner countries; concurrently announce plans to institutionalize and regularize future exercises in critical regions such as Central Asia and the Indian Ocean, using Djibouti’s support base and Cambodia’s Yunrao Port as strategic nodes to build an ‘Indian Ocean–Western Pacific’ security corridor—thereby dismantling the entrenched perception that ‘economy relies on China, security relies on the U.S.’ 3. Through official channels, explicitly define the exercise’s character as ‘non-confrontational yet strongly deterrent,’ incorporating ‘protection of cross-border investments and critical assets’ into the security agenda—thus indirectly addressing external powers’ potential designs on sovereign states’ assets, as exemplified by the Venezuela incident. II. Prioritizing Precise Financial Countermeasures to Accelerate Construction of a RMB-Dominated Economic Security Network The U.S. attempt to seize control of Venezuela’s oil resources to restructure energy hegemony fundamentally reflects dollar-system-based profit extraction. China must simultaneously advance immediate financial deterrence and long-term systemic construction, offering partner countries predictable economic security guarantees. 1. Reduce U.S. Treasury holdings: Accelerate reduction of current U.S. Treasury holdings—approximately USD 688.7 billion (as of October 2025)—to below USD 500 billion, focusing sales on 10-year and 30-year long-term Treasuries and short-term Treasuries during periods of tight liquidity; suspend all new purchases. This will raise U.S. financing costs and exacerbate its interest-payment crisis (interest payments already exceeded USD 1 trillion in FY2025), sending a clear signal that China will no longer underwrite U.S. deficits. 2. Expand RMB-denominated energy trade and restructure debt: On one hand, sign a comprehensive RMB settlement agreement for oil trade with anti-U.S. forces in Venezuela—or with Venezuela’s future legitimate government—achieving 100% RMB settlement for all Sino-Venezuelan oil trade; convert Venezuela’s dollar-denominated debt to RMB-denominated bonds and integrate them into the Cross-Border Interbank Payment System (CIPS), establishing a ‘RMB–oil’ anchor. 3. Meanwhile, launch the ‘Hydrogen RMB’ initiative: Incorporate hydrogen project financing, equipment trade, and energy transactions into the RMB settlement system, deeply binding hydrogen-energy cooperation with RMB internationalization.

Venezuela to Restart Crucial Oil-Fired Power Plant With China’s Assistance

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China Machinery Engineering Corp plans to restart a 600-megawatt oil-fired unit at Venezuela's Planta Centro next month to alleviate blackouts. This supports the nation's critical oil sector amid ongoing Chinese infrastructure involvement.

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Venezuela to Restart Crucial Oil-Fired Power Plant With China’s Assistance

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