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Export of fuel oil from Kuwait, one of OPEC’s leading crude oil exporters, is estimated to have reached a record high in February. The reason is that the new Al-Zour Oil Refinery has increased its fuel processing capacity.
According to ship tracking data from Kpler analyzed by Reuters, in February, mazut oil exports from Kuwait hit a record high of about 720,000 tonnes, equivalent to 158,000 barrels per day.
According to data from LSEG, Kuwait’s mazut oil exports in February reached about 516,000 tonnes, the highest export volume since March 2016.
Since the Al-Zour Oil Refinery was put into operation at the end of 2022, Kuwait has become a major exporter of low-sulfur fuel oil (VLSFO) and high-sulfur fuel oil (HSFO), mainly used as fuel in maritime transport.
In the total volume of fuel oil exports estimated by Kpler this month, 60% is VLSFO and the remaining 40% is HSFO.
The key to Kuwait’s increased fuel oil exports is the new Al-Zour Oil Refinery, one of the largest crude oil processing facilities in the Middle East operated by the Kuwait Integrated Petroleum Industries Company (KIPIC).
The oil refinery that KIPIC stated is the largest oil refinery in the world with a capacity of 615,000 barrels per day, starting to increase operations in 2023 and expected to reach full capacity in October. Coming soon.
In November 2023, the oil refinery had to temporarily halt operations after the fuel and gas supply was suddenly disrupted and is expected to resume operation 10 days later.
This oil refinery is highly flexible as it is designed to process various types of crude oil from Kuwait, including heavy crude oil Kuwait (KHC). The plant will be operated according to the upstream strategy of the Kuwait Petroleum Corporation (KPC), the state oil company of one of the largest crude oil producers in the Middle East.
It is worth mentioning that Kuwait is the main supplier of crude oil to Vietnam for many years. In 2023, Vietnam imported more than 9 million tons of crude oil from Kuwait, worth over $5.58 billion, up 7% in volume but down sharply 34% in value compared to 2022. The average import price in 2023 reached $618 per ton, a decrease of 17% compared to 2022.
On average in 2023, Kuwait pumped 2.55 million barrels of crude oil per day, a sharp decrease compared to 2022 as this country is among the OPEC+ members that announced additional production cuts from May to December 2023.
In the coming year, Kuwait’s production limit is 2.676 million barrels per day, OPEC said member countries decided to extend production cuts until the end of 2024, “to achieve and maintain stability for the oil market, while providing long-term direction for the market”.
According to Oilprice
