Oil expert Kamel Al-Harami has confirmed that Kuwait is well-positioned to satisfy the increasing global demand for low-sulfur fuel oil, backed by significant surpluses from its three main refineries: Al-Zour, Al-Ahmadi, and Mina Abdullah. His assessment comes as Saudi Arabia grapples with sharply declining Russian reformed oil supplies while demand for low-sulfur fuel continues to soar.
Kuwait Steps In as Russian Low-Sulfur Fuel Supplies Decline
Al-Harami noted that Saudi Arabian imports of low-sulfur crude oil exceeded 180,000 tons in July alone — a clear signal that alternative supply sources are urgently needed. To fill that gap, Kuwait Petroleum Corporation (KPC) has ramped up output at the Al-Zour refinery, generating a strategic oversupply of low-sulfur fuel oil for export markets.
Originally, 30 percent of Al-Zour's production was allocated to Kuwait's Ministry of Electricity and Water. When the Ministry chose cheaper imported gas instead, Kuwait found itself with a substantial surplus of low-sulfur fuel oil ready for Saudi Arabia and global buyers. Overall, Kuwait's refineries produce low-sulfur fuel oil representing 10 to 15 percent of total refined products.
Al-Zour Refinery Drives Kuwait's Export Surge
The Al-Zour refinery officially commenced operations on May 29, significantly strengthening Kuwait's capacity to serve global petroleum derivative markets. Russia's reduced fuel oil exports have directly accelerated Saudi imports from Kuwait, and as a result Kuwait increased its exports of fuel oil, diesel, and jet fuel to Europe, Asia, and India fivefold.
The scale of this shift is notable. Al-Zour, with a processing capacity of 615,000 barrels per day, ranks as the largest refinery in the Middle East and seventh largest globally, configured to produce around 220,000 barrels per day of very-low-sulfur fuel oil (VLSFO) at full capacity.
Kuwait's International Refining Network Adds Further Reach
Kuwait's refining footprint extends well beyond its borders, further strengthening its ability to serve rising international demand for oil derivatives. KPC holds stakes in the Nghi Son Refinery in Vietnam, the Milazzo Refinery in Italy, and the Duqm Refinery in Oman — a network that broadens Kuwait's market reach and profit potential across multiple continents.
This combination of surplus domestic production and international refining operations positions Kuwait as a dominant, long-term supplier in the global low-sulfur fuel oil market.
