KUWAIT CITY, July 27: Oil expert Kamel Al-Harami has affirmed Kuwait’s capability to fulfill the global demand for low-sulfur fuel oil, citing substantial surpluses from the country’s three main refineries – Al-Zour, Al-Ahmadi, and Mina Abdullah. His remarks come as international news sources report a significant increase in Saudi Arabia’s demand for this fuel, driven by a severe shortage of Russian supplies. According to Al-Harami, Saudi Arabia is expected to import over 180,000 tons of low-sulfur fuel oil from Kuwait in July alone.

This move is a rare occurrence, highlighting the growing need for alternative sources due to the decline in Russian fuel oil availability. Al-Harami explained that Kuwait Petroleum Corporation (KPC) has increased production at its Al-Zour refinery, which has led to an oversupply.

Despite the Ministry of Electricity and Water initially being allocated 30 percent of this production, it opted to use less expensive imported gas, resulting in a surplus that Kuwait can now export to Saudi Arabia. The Ministry’s decision to rely on imported gas has allowed Kuwait to allocate excess low-sulfur fuel oil to meet international demand. Kuwait’s three refineries collectively produce low-sulfur fuel oil at a rate of 10 to 15% of their total refined output.

The recent official operation of the Al-Zour refinery on May 29 has further bolstered Kuwait’s ability to supply global markets with petroleum derivatives. Sources have indicated that the current shortage of Russian fuel oil is a significant factor in Saudi Arabia’s increased reliance on Kuwaiti supplies. Kuwait has recently expanded its fuel oil, diesel, and jet fuel exports to Europe, Asia, and India by five times. This surge in exports, coupled with the presence of Kuwaiti refineries abroad -- including the Nghi Son Refinery in Vietnam, the Milazzo Refinery in Italy, and the Duqm Refinery in Oman -- positions Kuwait to achieve substantial profits and meet growing global demand for its oil derivatives in the coming years.

By Najeh Bilal
Al-Seyassah/Arab Times Staff