Kuwait's New Al-Zour Refinery to Export 7 Million MT/Year of VLSFO
The refinery is likely to bring VLSFO prices at Fujairah down relative to other bunkering hubs. File Image / Pixabay
Estimates for VLSFO exports from the new al-Zour refinery in Kuwait have been increased following the refinery's recent start of operations.
The refinery is now expected to produce 7 million mt/year of VLSFO for export, price reporting agency Argus Media reported on Wednesday, citing comments from Salah al-Awadhi, senior market analyst at KPC.
The previous estimate was 5.5-6 million mt/year.
The first stage of the refinery's start-up was carried out in November, and the second earlier this month. The third, bringing the refinery up to full capacity, is expected by the end of this year, according to the report.
The refinery represents a significant increase in the region's bunker production, and is likely to bring VLSFO prices at Fujairah down relative to other bunkering hubs around the world. VLSFO prices at Fujairah have dropped by 9.1% since the end of November, according to Ship & Bunker data, while the G20-VLSFO Index of prices across 20 leading bunkering ports has fallen by 8.4% over the same period.
More than 45% of the refinery's fuel oil output will be VLSFO with 380 CST viscosity, according to the report.