Kuwait to spearhead Mideast refinery capacity growth by 2024

Supported by its Al Zour project, Kuwait is expected to lead the refinery capacity growth in the Middle East over the next four years

  
Oil is collected at a production facility at the Burgan oil field January 13, 2003 in Central Kuwait. Image used for illustrative purposes.

Oil is collected at a production facility at the Burgan oil field January 13, 2003 in Central Kuwait. Image used for illustrative purposes.

Getty Images/Scott Nelson

The refining capacity in the Middle East is expected to increase by around 17 per cent from 11.6 million barrels per day (bpd) in 2020 to 13.6 million bpd by 2024, according to GlobalData, a leading data and analytics company.

Supported by its Al Zour project, Kuwait is expected to lead the refinery capacity growth in the Middle East over the next four years, with the anticipated addition of 615,000 bpd contributing to around 31% of the region’s total growth.

This is expected to be closely followed by Saudi Arabia, with contributions of 24%, stated GlobalData in its report ‘Refining Industry Outlook in Middle East to 2024.

Of the total capacity additions in the region, 1.5 million bpd is expected to come from planned projects, while the remaining 0.5 million bpd is likely to come from the expansions of active/operational projects.

Amareswari Kanaparthi, the oil and gas analyst at GlobalData, said: "Kuwait leads the refinery capacity growth in the Middle East through the planned Al-Zour project, one of the biggest upcoming refineries in the world."

"The refinery is being planned to process 615mbd of Kuwaiti crudes to produce low-sulphur fuel oil (LSFO) for power plants in the country, and other products such as jet fuel for global markets," noted Kanaparthi.

The refinery helps Kuwait to reduce emissions from power plants by replacing high-sulfur fuel oil with low-sulfur fuel oil," she added.

GlobalData expects Saudi Arabia to occupy the second place in terms of refinery capacity additions in the Middle East by 2024.

The kingdom is likely to contribute about 24% of Middle east refinery capacity growth, adding about 470 million bpd in the next four years.

Additions in the country are mainly from the planned Jizan refinery, which has a refining capacity of 400 million bpd, and the expansions of Jubail and Yanbu refineries.

According to Kanaparthi, Iraq will be the third-highest country in the Middle East to add about 310 million bpd of refining capacity by 2024. "The planned Karbala refinery accounts for about half of the capacity additions in the country," she added.-TradeArabia News Service

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