Page 11 - MEOG Week 45

MEOG PROJECTS & COMPANIES MEOG

Kuwait leads way in Middle

Eastern refining growth

KUWAIT KUWAIT will lead the way in terms of refining for global markets.
capacity growth in the Middle East over the next GlobalData sees Saudi Arabia contribut-
five years, according to a report by GlobalData. ing the second-largest amount of new capac-
The Gulf state is expected to add some ity, accounting for 25% of the total, or about
615,000 barrels per day of extra throughput 470,000 bpd by 2024. State-owned Saudi Aramco
capacity by 2024, or 31% of the region’s total shipped its first cargo from the new 400,000 bpd
growth. This extra capacity will come from the Jizan refinery in September, indicating that the
Al-Zour project in the country’s south. plant is at an advanced stage of commissioning.
Kuwait has also set out to modernise its exist- Saudi Arabia is also expanding its refineries in
ing Al-Ahmadi and Abdullah refineries, as it Jubail and Yanbu.
strives to double national capacity to 1.6mn bpd According to GlobalData, Iraq will be the
by 2025. It also wants to produce more high- third-biggest contributor, supplying 310,000 bpd
er-value products such as diesel and kerosene of new capacity by 2024. The planned Karbala
that can be exported. refinery will account for around half of the coun-
GlobalData estimates that overall Middle try’s capacity additions.
Eastern refining capacity will expand by around Karabal was first proposed back in 2007, but
17% from 11.6mn bpd in 2020 to 13.6mn bpd has seen repeated delays. Iraq’s oil ministry pre-
by 2024. Some 1.5mn bpd is expected to come dicted last year that the plant would be ready in
from greenfield projects and 0.5mn bpd from the 2021, but its launch was subsequently pushed
expansion of already-working refineries. back again to 2023.
“Kuwait leads the refinery capacity growth in It said recently that construction of the facility
the Middle East through the planned Al-Zour was nearing 90% completion.
project, one of the biggest upcoming refineries In fourth and fifth place, according to
in the world,” GlobalData analyst Amareswari GlobalData, are Oman and Iran. All of the extra
Kanaparthi explained. capacity will come from greenfield projects in
The Al-Zour refinery will produce low-sul- Oman, where OQ and Kuwait Petroleum aim to
phur fuel oil for domestic power generation, launch the 230,000 bpd Duqm refinery in early
helping reduce the country’s emissions from this 2022. The bulk of the new capacity in Iran will
sector, and turn out other products like jet fuel come from existing facilities.™

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