Technical Issue Delays Kuwait’s Al-Zour Refinery Completion

Kuwait’s ambitious Al-Zour refinery project has encountered a delay, pushing its completion timeline to the end of the summer. According to Sheikh Nawaf al-Sabah, the CEO of Kuwait Petroleum Corporation, construction on the facility’s third section has been postponed due to a technical glitch. This temporary setback was the result of a technical fault that necessitated a temporary halt in operations last month.

In an interview with Bloomberg News, Sheikh Nawaf al-Sabah acknowledged that such challenges can be expected in the early phases of operating a world-scale refinery of this magnitude. Currently, the company is operating two out of the three sections at the refinery. The glitch had forced the entire facility to suspend operations for a period of two weeks. The third section is now scheduled to commence operations in June, as reported by Bloomberg.

Despite the temporary delay and technical issues, al-Sabah expressed optimism about the outlook for China’s oil consumption, noting that it remains encouraging despite certain headwinds.

Once completed, the Al-Zour refinery is poised to enhance Kuwait’s refining capacity by adding 615,000 barrels per day. This significant addition will position it as one of the largest oil-processing facilities in the Middle East, according to Bloomberg.

Kuwait, renowned as one of the world’s major oil producers, relies heavily on oil-related activities, accounting for nearly half of its gross domestic product (GDP) and approximately 90 percent of government export revenues, as indicated by the International Trade Administration.

Kuwait’s primary oil exports predominantly serve Asian clients, with China standing out as the largest purchaser. Following China, South Korea, India, Japan, and Vietnam are among the key importers of Kuwaiti oil, underscoring its importance in the global energy supply chain.

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