Kuwait Eyes Revenue Boost From Clean Fuels Upgrade

Commissioning of Kuwait’s clean fuels projects across its two refineries is gathering momentum. MEES looks into the likely products balance after start-up.

State refiner KNPC’s long-delayed clean fuels project (CFP) upgrades at its two operational refineries, Mina al-Ahmadi and Mina Abdullah, are expected to be fully online by the end of 2019. In the meantime, work at the refineries has contributed to reducing Kuwait’s throughput to its lowest level in more than 20 years.

The CFP was originally intended for start-up in late 2017. The first unit testing was eventually carried out last year, indicating that full plant operations could begin by end-2019 ( MEES, 30 November 2018 ). KNPC says a diesel unit will be the first to be brought online.

The work is set to temporarily eliminate Kuwait's output of low-value fuel oil, while boosting output of middle distillate diesel and light-end naphtha. Industry figures see strong demand growth for diesel, especially from January 2020 when maritime fuel regulations are tightened ( MEES, 15 February ). Regional refiners are seeking to maximize production. Margins for naphtha meanwhile are low, but as a key petrochemicals feedstock demand could strengthen longer term ( MEES, 27 April 2018 ). (CONTINUED - 837 WORDS)

DATA INSIDE THIS ARTICLE

chart Kuwait's Key Products Output, Crude Runs Hit By Shuaiba Shutdown, Clean Fuels Upgrades ('000 B/D)
chart Mina Al-Ahmadi & Mina Abdullah Output Before Cfp (%)...
chart ...And After