Kuwaitis running oil refineries with full efficiency: Al-Marzouq
Oil refining industry faces challenges
KUWAIT CITY, June 27, (KUNA): Kuwaitis have been managing oil refineries in the country with full efficiency, Minister of Oil, and Minister of Electricity and Water Essam Abdulmohsen Al-Marzouq said recently.
The minister visited the two refineries of Mina Abdullah and Mina Ahmadi, accompanied by CEO of the Kuwait Petroleum Corporation (KPC) Nizar Al-Adsani, the Kuwait National Petroleum Company (KNPC) said in a statement. He congratulated the staff on Eid Al-Fitr.
Al-Marzouq highly appreciated the staff’s commitment and hard work to fulfil the needs of the local market around the clock.
During the visit, Al-Marzouq and Al-Adsani, attended the daily operational meeting of the two refineries, focusing on overcoming any emergencies that might occur, as well as occupational safety at the two sides.
Meanwhile, refining industry in Kuwait is facing some challenges that warrant greater efforts to tackle and attain the country’s strategic goals in the sector, according to a report.
The report, released by Kuwait Diplomatic Center for Strategic Studies, indicated that these challenges are related to the industry’s nature itself and investments.
Heavy crudes are naturally different from light oils, with diverse transportation and refining difficulties, largely due to divergent crudes’ densities and disposable substances.
Heavy crudes require more complex refining processes, and there are difficulties in producing derivatives, and this lead to higher contamination to the environment, where Kuwait is doing its best to minimize such harmful outcome.
On the investment dimension, the report notes unstable supply and demand in the markets, thus creating uncertainties with
respect of requirements, production and proceeds. This situation has prompted producers to revise expansion schemes, with intention to cut cost of production and minimize losses.
Moreover, there is strong competition on part of new comers in the field, namely China, India, Indonesia, Malaysia and Vietnam, in addition to other Gulf countries.