Kuwait Launches Commercial Operations at Al-Zour Refinery

A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)
A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)
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Kuwait Launches Commercial Operations at Al-Zour Refinery

A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)
A general view of one of three Atmospheric Residue Desulphurisation units (ARDS) at the al-Zour refinery. (Reuters)

The Kuwait Integrated Petroleum Industries Co (KIPIC) launched the first phase of al-Zour refinery commercial operations on Sunday after the project started last month to produce and sell primary quantities of fuel oil and supply it to local power stations.

In a statement to (KUNA), Acting CEO of (KIPIC) Waleed al-Bader said the operation is an important historical event and is considered a pillar of the country's development plan.

Bader stressed that the refinery provides fuel of high quality and environmental standards to meet the local energy demand, as it limits emissions of gases polluting the environment and improves air quality.

He indicated that it is a vital outlet for the disposal of heavy Kuwaiti oil and provides other refined products for export in global markets with standard specifications.

Furthermore, he praised the unique role of the national expertise and the Kuwaiti youth, who were qualified according to the highest professional levels in leading and implementing the operations at the refinery.

Bader expressed his gratitude and appreciation for all the efforts to helped make this national achievement.

The company had already started operation of the refinery's first phase, followed by the second and third phases, moving towards total maximum refining capacity.

Executive Vice President of al-Zour Refinery Khaled al-Awadhi said KIPIC carried out the trial operation of the first crude oil distillation unit and refined 2.5 million barrels of crude oil, securing the main stock of oil derivatives that contributed to the smooth process of the rest of the units.

He added that fuel oil was also produced from the crude oil distillation unit, which was improved to match the specifications required by the Ministry of Electricity and Water, and supplied about 278,000 tons of fuel oil at peak demand from power plants, in coordination with the Kuwait Petroleum Corporation.

Awadhi said the refinery achieved the first commercial operation related to sending petroleum products to meet the needs of the Ministry of Electricity and Water.

Last Tuesday, Reuters quoted two industry sources saying that the Kuwait Foreign Petroleum Exploration Company (KUFPEC) issued a tender to sell a liquefied natural gas (LNG) cargo for loading in Australia in December.

They added that the cargo was free-on-board (FOB) from the Wheatstone plant in Australia for Dec. 19 to 24 loading, and the tender was launched on Wednesday and closed Thursday.

KUFPEC, Kuwait's foreign energy exploration arm, is a stakeholder in the Chevron-operated Wheatstone LNG project.



US Coast Guard Says Hurricane May Shut Oil Ports

 Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)
Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)
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US Coast Guard Says Hurricane May Shut Oil Ports

 Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)
Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)

The US Coast Guard warned of possible Texas port closures from Corpus Christi to Houston and began restricting vessel traffic because of Tropical Storm Beryl, which is expected to become a hurricane before making landfall by Monday morning at Port Lavaca.

Port closures could bring to a temporary halt shipments of crude oil to refineries and motor fuels from those plants.

Port condition "Yankee" was set by the Coast Guard captain of the port of Corpus Christi on Saturday afternoon, restricting vessel movement in ports from Matagorda Bay, 101 miles (163 km) southwest of Houston, to the US-Mexico border.

Citgo Petroleum Corp was cutting production at its 165,000 barrel-per-day Corpus Christi, Texas, refinery on Saturday ahead of the approach of Beryl to the Texas coast.

Citgo plans to keep the Corpus Christi refinery running at minimum production as the storm moves up the coast toward a projected landfall at Port Lavaca, a pipeline hub.

Oil producer Shell Plc completed the evacuation of workers from its Perdido production platform in the US-regulated Gulf of Mexico ahead of the approach of the storm, the company said on Friday night.

Production on Perdido was shut prior to the evacuations. Shell said it also evacuated workers from the Whale platform, which is due to start production later this year.

Gibson Energy, which operates a large oil terminal in Corpus Christi, said operations were continuing, but it would take further steps depending on the forecast.

The storm was moving on Saturday with maximum sustained winds near 60 mph (95 kmh), the National Hurricane Center said.

The latest forecasts would put Corpus Christi on the dry side of the storm where the lowest winds and least rain could be expected. But Beryl could bring gale-force winds to the port, which is why the Coast Guard restricts traffic or shuts the port.

Most of the northern Gulf's offshore oil and gas production is east of Beryl's forecast track.

US Gulf of Mexico offshore production of about 1.8 million barrels per day accounts for about 14% of total US crude output, according to the US Energy Information Administration. Any impact on supplies could push up prices of US oil and offshore crude grades.

Oil major Chevron Corp, among the biggest US offshore producers, said on Friday that production from its operated assets remained normal. But it evacuated nonessential personnel from some of its Gulf of Mexico facilities.

Murphy Oil Corp said it has not shut in production or evacuated personnel, and continues to monitor the storm.