Crude Unit Shutdown at Al-Zour Plant Due to Technical Error: Major Setback for KPC

Kuwait: KPC Refinery in Kuwait faces interruption as CDU briefly suspends operations Due to technical difficulties, one of the crude distillation units (CDUs) at Kuwait is state-owned KPC's new al-Zour refinery has temporarily ceased functioning. According to a source with knowledge of the situation, the No. 2 CDU has been closed since last week.

Market participants expect the closure may stretch until May even though the exact date the unit will go back online is still unknown. Multiple CDUs could be unavailable for up to three weeks, according to another source. In March, the 615,000 b/d al-Zour refinery's second phase of operations began, and it is currently ramping up.

Al-Zour refinery is now offering up to 1.79 million tons (11.5 million barrels) of low-sulphur fuel oil (LSFO) for loading between November 2022 and May 2023. A tender for approximately 100,000 tons of LSFO for loading between April 7-8 with a potential sale of up to 60,000 tons was recently closed by the refinery. It is unknown whether the refinery's decision to stop producing more LSFO is connected to the CDU shutdown. The refinery has also offered low-sulphur diesel and jet fuel in the past.

Al-Zour's last phase was anticipated to be finished by early March, and it is anticipated to be completely operational over the following few months, according to KPC. Kuwait has capability for refining will rise to 1.415 million b/d after construction is complete.