The country expects to supply five times more diesel fuel to compensate for flows from the Russian Federation.
Kuwait plans to boost diesel and jet fuel exports to Europe by 2023 to make up for missing supplies from Russia. Bloomberg reported this on January 10.
According to a source familiar with the situation, the Middle Eastern country wants to increase the supply of diesel fuel to Europe five times compared to 2022 – up to 2.5 million tons (about 50 thousand barrels per day), as well as double the export of kerosene – up to 5 million tons per year (about 100 thousand barrels per day).
The European Union faces potential fuel shortages from February 5, when it is set to ban imports of oil products from Russia as punishment for its invasion of Ukraine. “Diesel prices could rise to $200 per barrel this quarter, according to Bank of America, as the ban could cause a global deficit,” the agency wrote.
According to analysts of JPMorgan Chase & Co., at the end of last year, the EU bought about 1.3 million barrels per day of products from Russia. About half of them are diesel.
Bloomberg recalled that in recent years, Kuwait has spent tens of billions of dollars on the modernization and construction of new oil refineries. His most important investment is Al-Zour, the largest refinery in the world, with the capacity to process 615,000 barrels of crude oil per day.
The first stage of Al-Zur continues to process 205,000 barrels of oil per day, the second stage should start operating in mid-February, and the third – in April.
With the plant fully operational, Kuwait’s oil refining capacity will grow to 1.5 million barrels per day.
In addition, other Middle Eastern oil producers such as Saudi Arabia and the United Arab Emirates are also expected to increase fuel exports to Europe in 2023.
It will be recalled that on December 5, a ban on the import of oil from the Russian Federation by sea was implemented. In addition, more than 30 countries around the world have set a price ceiling for oil from Russia at $60 per barrel.
Europe finds substitute for Russian diesel fuel – Reuters
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