Oman’s Duqm Refinery Exports First Ultra-Low Sulphur Diesel Cargoes

Oman’s Duqm Refinery Exports First Ultra-Low Sulphur Diesel Cargoes

Oman’s state-owned OQ has achieved a significant milestone by exporting its first ultra-low sulphur diesel (ULSD) cargoes from the newly operational Duqm refinery. The facility, a 50:50 joint venture with Kuwait’s state-owned KPI, is in the final stages of its trial runs and is expected to reach its full capacity by the year’s end. This development marks a crucial step in Oman’s efforts to enhance its refining capabilities and expand its presence in the global energy market.

Duqm Refinery’s Export Endeavors

The Duqm refinery has embarked on its export journey with two tankers, the Hellas Margarita and Oinoussian Star, each carrying 35,000 metric tons of ULSD. These cargoes are destined for regions in east Africa or South Africa. The former has already departed Oman, while the latter is scheduled to set sail shortly. Additionally, the refinery has been actively exporting other petroleum products, including naphtha, high-sulphur fuel oil (HSFO), and low sulphur fuel oil (LSFO), showcasing its versatility.

Refinery Expansion and Feedstock

As of July, the Duqm refinery was approximately 99% complete, according to KPI’s chief executive, Shafi Al-Ajmi. The facility, once fully operational, will rely on a feedstock blend consisting of 65% Kuwaiti crude and 35% Omani crude. This dynamic combination will enable the refinery to contribute significantly to Oman’s petroleum output, including 130,000 barrels per day (b/d) of diesel, 22,000 b/d of jet fuel, 15,000 b/d of liquefied petroleum gas (LPG), and 63,500 b/d of naphtha.

The Strategic Significance

The successful export of ULSD from the Duqm refinery not only marks a significant achievement for Oman’s energy sector but also highlights the strategic importance of the refinery as a key player in the global energy market. It positions Oman to meet the rising demand for high-quality refined products while contributing to its economic growth and energy security.

Oman’s Duqm refinery’s inaugural ULSD exports represent a major step forward in the country’s efforts to expand its refining capacity and enhance its global presence in the energy sector. As the refinery nears full operational capacity, it is poised to play a pivotal role in meeting regional and international demand for a range of petroleum products.