Kuwait's Al-Zour Refinery Boosts National Capacity to Record 1.8 Million Barrels Per Day

Kuwait has achieved a significant milestone in its oil refining sector with the inauguration of the Al-Zour refinery. This development has propelled the country's refining capacity to a record 1.8 million barrels per day (bpd). The Al-Zour refinery, one of the largest in the Middle East, has commenced full operations with a capacity of 615,000 bpd.

The Al-Zour refinery, located 90 kilometers south of Kuwait City, was officially inaugurated on May 29 by His Highness the Amir Sheikh Mishal Al Ahmad Al Jaber Al Sabah. The refinery is a key component of the Kuwait Petroleum Corporation's (KPC) 2040 strategic plan, which aims to enhance the nation's refining capabilities and produce high-quality oil derivatives that meet international environmental standards.

Kuwait's Oil Minister Emad Mohammed al-Atiqi highlighted the significance of this achievement, stating, *"We have succeeded in reaching a record refining capacity of 1.83 million bpd both domestically and abroad. "* This increase in capacity is a substantial jump from the 2021 figure of 600,000 bpd, showcasing the rapid development of Kuwait's oil sector.

Kuwait's increased refining capacity has significant implications for the global oil market and energy sector. This development could lead to increased oil exports, revenue growth, and enhanced economic stability for Kuwait, with potential ripple effects on the global economy.

The Al-Zour refinery was built at a cost of $13.2 billion and was initially slated to begin operations in 2019. However, the COVID-19 pandemic caused delays, pushing the start date to 2022. Despite these setbacks, the refinery has now reached its full operational capacity, contributing significantly to Kuwait's domestic refining capabilities, which now stand at 1.415 million bpd.

In addition to its domestic refineries, Kuwait operates three refineries abroad, located in Oman, Vietnam, and Italy. The combined efforts of these facilities have enabled Kuwait to achieve a total refining capacity of 1.83 million bpd. The Al-Zour refinery alone is expected to boost Kuwait's exports of oil derivatives, particularly low-sulfur grades that align with global environmental standards.

The Al-Zour refinery is designed to process various types of Kuwaiti oils, producing high-quality products such as fuel oil, diesel, naphtha, and low-sulfur fuel oil. These products can be exported to over 30 countries, enhancing Kuwait's position in the global oil market. The refinery also features advanced technologies for sulfur cracking and uses treated water for industrial and irrigation purposes.

The project has also created significant employment opportunities for Kuwaiti nationals, with approximately 1,400 recent graduates employed. This aligns with Kuwait's broader development goals and its commitment to nurturing local talent within the oil sector.

Looking ahead, Kuwait aims to further expand its production capacity to 4 million bpd by 2035. This ambitious target highlights the country's commitment to maintaining its status as a leading oil producer and exporter in the region.

The inauguration of the Al-Zour refinery marks a major milestone for Kuwait's oil industry, enhancing its refining capacity and positioning the country for future growth. The nation's continued development of its oil infrastructure will be felt both domestically and internationally.

Key Takeaways

• Kuwait's oil refining capacity reaches 1.8 million barrels per day (bpd) with Al-Zour refinery's inauguration.
• Al-Zour refinery has a capacity of 615,000 bpd, making it one of the largest in the Middle East.
• Kuwait's total refining capacity, including abroad, reaches 1.83 million bpd.
• The Al-Zour refinery will boost Kuwait's exports of low-sulfur oil derivatives, meeting global environmental standards.
• Kuwait aims to expand production capacity to 4 million bpd by 2035, solidifying its position as a leading oil producer.