The beginning of the year brought unprecedented figures for the Kuwaiti energy sector. The Al-Zour refinery, one of the largest in the world, resumed full operations and enabled the country to export record volumes of fuel oil very low sulfur fuel oil (VLSFO).
The refinery, operated by Kuwait Integrated Petroleum Industries Company (KIPIC), reached its maximum capacity of 615,000 barrels per day in October 2023. Although it has since faced unscheduled shutdowns, such as a fire in late 2025, January marked a turning point in its recovery.
Record VLSFO exports
With the plant operating at full capacity, Kuwait exported more than 1 million metric tons of VLSFO in January, equivalent to approximately 205,000 barrels per day. These shipments went mainly to Southeast Asian countries and offshore supply hubs in the Gulf, generating a notable increase in regional supply.
The rebound in Kuwaiti shipments is putting pressure on fuel oil prices in Asia. Analysts warn that the VLSFO market could face a decline in margins this quarter. Increased availability in hubs such as Singapore is upsetting the supply/demand balance.
Kuwait boosts fuel oil exports
After a period marked by interruptions, the country consolidates its position as a major supplier of bunker fuels for maritime transport. maritime bunker fuels, the country is consolidating its position as a major supplier of. In addition to VLSFO, Kuwait also maintains exports of high sulfur fuel oil (HSFO), strengthening its presence in a global market that demands energy alternatives with lower emissions.
The sustained entry of Kuwaiti product into the Asian market not only redefines trade flows, but also forces other producers to adjust their supply strategies. The technical capacity of Al-Zour and its logistical integration from the Gulf elevate Kuwait as a strategic player on the fuel oil routes.
With the infrastructure fully operational, Kuwait reaffirms its commitment to diversify its energy exports and leverage its competitive advantage in refining and distribution.
Source and internal photo: Oil Price
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