The Hermanos Díaz Oil Refinery, situated in Santiago de Cuba and part of the Union Cuba-Petroleum (Cupet), has successfully processed heavy domestic crude oil to produce three derivatives: naphtha, fuel oil, and diesel, as reported by the official newspaper Granma.
This announcement comes amidst one of the most severe energy crises Cuba has faced in decades. Fuel reserves were barely sufficient to last until the end of April, and the regime has yet to address the structural deficit.
Irene Barbado Lucio, the general director of Hermanos Díaz and a member of the Central Committee of the Communist Party of Cuba, explained that facilities previously used for refining imported heavy crude were adapted to process the highly viscous national crude, which contains high levels of sulfur and other contaminants.
Previously, the refinery had managed to process imported heavy crude using a solvent to reach 16 degrees API, converting it into medium crude, as the industry was designed to handle lighter crude. However, the thought of using domestic crude had not been considered, stated Víctor Manuel Díaz Despaigne, the engineer leading the multidisciplinary team behind the innovation.
The naphtha produced can sustain operations at the Varadero oil wells for 15 days, the diesel is ready for market, and the fuel oil is under evaluation for use in power plants and the nickel industry.
Challenges and Innovations in Cuba's Oil Industry
Barbado Lucio emphasized that these derivatives, along with diesel, were made available to the country and highlighted the extensive research and experimentation involved, in parallel with the work conducted by the Petroleum Research Center (Ceinpet).
On the previous day, Díaz-Canel presented the thermoconversion technology developed by Ceinpet to the National Innovation Council as a historical achievement, claiming that a "taboo" regarding domestic crude had been broken.
However, Irenaldo Pérez Cardoso, deputy director of Cupet, revealed in the same meeting that the Sergio Soto refinery in Cabaiguán, Sancti Spíritus, has been processing domestic crude since 2010, contradicting the state's narrative of overcoming a "taboo."
Thermoconversion, also known industrially as visbreaking or thermal cracking, has been a global process for decades, with an installed capacity of about four million barrels daily since 1996, which casts doubt on the novelty of the official announcement.
The Path Forward for Cuba's Energy Sector
Pérez Cardoso explained that the technology aims to reduce the viscosity of crude without needing to mix it with naphtha, a product in short supply due to intensified sanctions, fuel blockades since 2019, and now the energy blockade.
Plans include setting up a pilot plant at the Sergio Soto refinery in Cabaiguán, though no costs or timelines have been provided. A second phase involves developing catalysis using Cuban laterites to reduce the sulfur content of the crude.
The dire circumstances driving these emergency measures are stark: Cuba produces only about 40,000 barrels of its own crude daily, against a demand of 90,000 to 110,000 barrels. Venezuelan supplies halted after Nicolás Maduro's capture in January 2026, and Mexico ceased shipments on January 9 of the same year.
Trump's Executive Order 14380, signed on January 29, 2026, worsened the situation by imposing secondary tariffs on any country exporting oil to Cuba.
Recent relief came from Moscow: the Camilo Cienfuegos refinery processed 100,000 tons of crude donated by Russia, with distributions beginning on April 19. Still, the Cuban government admits there is "almost nothing" in terms of fuel to sustain the economy.
Barbado Lucio announced plans to conduct another run of domestic crude as part of ongoing efforts to improve industrial processes, though specifics on timing and volume remain unclear, leaving open the question of whether this technical endeavor will even slightly alleviate the energy deficit suffocating the Island.
Understanding Cuba's Energy Crisis
What is the main issue with Cuba's energy resources?
Cuba faces a significant energy crisis due to a shortage in domestic crude production and reduced foreign supplies, creating a substantial deficit against the country's energy needs.
How is the Hermanos Díaz refinery adapting to the crisis?
The Hermanos Díaz refinery has adapted facilities to process heavy national crude, producing naphtha, fuel oil, and diesel, despite challenges with viscosity and sulfur content.
What technological innovations are being introduced?
Cuba is introducing thermoconversion technology to reduce crude viscosity without naphtha, with plans for a pilot plant at the Sergio Soto refinery.