Kuwait to import fuel oil in 2018 after Clean Fuel project start-up

DUBAI: Kuwait is set to import fuel oil to use mainly in power generation for about a year following the start-up of the Clean Fuel project by 2018, the chief executive of state refiner Kuwait National Petroleum Co (KNPC) said.

Fuel oil to meet the requirements of the Ministry of Electricity and Water is currently being produced from the other existing refineries, Mina Abdullah and Mina Al-Ahmadi, the CEO of KNPC Mohammad Ghazi al-Mutairi told Reuters.

Reuters reported last week that with the scheduled decommissioning of the 200,000 barrels per day (bpd) Shuaibah refinery on April 1, Kuwait would be forced to import the residual fuel from next year until the al-Zour refinery starts running in 2019.

"The fuel oil import is not linked to Shuaiba's retirement," Mutairi said.

Part of the country's 30 billion dinar ($100 billion) economic development plan, the Clean Fuel Project will upgrade Kuwait's the Mina Abdullah and Mina Al-Ahmadi refineries, with a focus on producing higher-value products such as diesel and kerosene for export.

Fuel oil imports will be needed after the startup of the Clean Fuel project by around October 2018 until the new al-Zour refinery, currently under construction, starts running later in 2019, Mutairi said.

When operational, the al-Zour refinery is expected to produce some 225,000 bpd of fuel oil, he said.

"Post Shuaiba retirement, imports of gasoline will be needed from time to time until the start up of the Clean Fuel project," he added.