Al-Zour Refinery Reaches Full Capacity, Setting Kuwait's Fuel Export Record

In February, Kuwait experienced a historic surge in fuel oil exports, driven by the Al-Zour refinery reaching full processing capacity.

Data compiled by “MEED” from the trading platform “Kpler” and the London Stock Exchange Group (LSEG) indicates that Kuwait's refined product exports, particularly low-sulfur fuel oil (VLSFO) crucial for shipping, reached unprecedented levels. According to Al-Qabas daily, Kuwaiti oil exports soared to 720,000 metric tons, equivalent to 158,000 barrels per day.

Approximately 60% of these exports consisted of low-sulfur fuel oil, with high-sulfur fuel oil (HSFO) making up the remaining 40%. Notably, Kuwait's low-sulfur fuel oil exports rebounded from a previous quarter slowdown when supplies were redirected to domestic power generation.

Since the Al-Zour refinery's operations began, over 50% of Kuwait's low-sulfur fuel oil exports have been directed to Singapore, the world's top bunkering port. Additionally, more than 40% of exports remained within the Middle East, with Fujairah in the UAE emerging as a significant destination.

Recently, the Kuwait Integrated Petroleum Industries Company (KIPIC) extended the bidding deadline for a $16 billion contract aimed at delivering alternative feeding systems for the hydrogen production unit at the Al-Zour Refinery. Initially set for February 11, the deadline was postponed to March 12 to allow interested parties more time to submit proposals.

The contract's scope includes engineering, procurement, and construction (EPC) activities, spanning pre-commissioning, commissioning, and quality testing. Contractors such as Hyundai Engineering & Construction (South Korea), Larsen & Toubro Hydrocarbon Energy (India), Petrofac (UK), Samsung Engineering (South Korea), and SK Engineering and Contracting (South Korea) have been approached for potential involvement in the project.

With a budget of $150 million, the project is expected to last 36 months. Its EPC scope includes the construction of Unit 38 (pressure facilities), enhancements to the current steam generation unit, and the construction of associated facilities, marking a significant milestone in Kuwait’s ongoing refinery development endeavors.

Comments Post Comment

Leave a Comment

Submit