Kuwait Integrated Petroleum Industries Company (KIPIC) is preparing to export the first shipment of low sulfur fuel oil from its Al-Zour refinery to a major oil company.
A few weeks after the first phase commercial operation, the refinery launched the first tender for low sulfur fuel oil, with an estimated shipment of 100,000 tons for cargo on November 28 and 29 (2022), according to the l ‘agency. Reuters.
The tender was awarded to a major oil company after the tender closed on November 18 (2022), as monitored by the specialized energy platform.
Offer details
While delivery port details were not disclosed, the shipment could be headed for Asia or the US Gulf Coast.
The cargo was sold on an FOB basis at a premium of about $17 a tonne over Singaporean rates, according to Reuters.
And search Al-Zour Refinery – whose investments amount to 12 billion USD – to become a major supplier of the low sulfur fuel oil market, and had previously planned to export the first shipments of its petroleum products during the month of November (2022) .
Al-Zour Refinery in Kuwait
The Rose Refinery is the fifth largest refinery in the world by storage capacity, with an estimated refining capacity of 615,000 barrels per day, as well as being the largest integrated petrochemical refinery in the world. Kuwaitand the world’s largest complex of desulphurization units.
In October (2022) the refinery produced the first quantities of fuel It was sold to power local power plants.
The refinery began operating at a capacity of 205,000 barrels per day earlier this month.
Once fully operational, it will be able to process 615,000 b/d of Kuwaiti light crude or approximately 535,000 b/d of heavy crude.
This is expected to bring the total refining capacity in Kuwait to around 1.42 million, according to the Upstream website.
The importance of the filter
On Sunday, November 6 (2022), Kuwait Integrated Petroleum Industries Company (KIPIC) announced the start of commercial operations of the first phase of the Al-Zour Refinery project.
This step is an important historical event and a key pillar of Kuwait’s development plan.
The company’s chief executive, Walid Al-Badr, said the refinery supplies fuel of high quality and environmental standards to meet local energy demand, especially as it reduces emissions of gases that pollute the environment.
He indicated the refinery’s supply duplicate derivatives For export to international markets with standard specifications.
While Al-Zour Refinery Executive Vice President Khaled Al-Awadi believes that the operation of the first phase will enhance the growth of the national economy and increase the country’s financial revenue as well as provide more job opportunities.
Despite the challenges that the project faced – with reference to the Corona pandemic – the company fulfilled its commitment in accordance with the highest international standards and specifications.
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