MUSCAT: OQ8 — a joint venture between Oman’s OQ Group and Kuwait Petroleum International (KPI) — has achieved a significant milestone by exporting the first ultra-low sulphur diesel (ULSD) cargoes on Tuesday from its newly established 230,000 barrels per day (b/d) Duqm refinery. The refinery has undergone trial runs and is on track to reach full capacity by the end of this year.
According to shipping fixtures, two tankers, namely the Hellas Margarita and Oinoussian Star, have been provisionally contracted to transport 35,000 metric tonnes of ULSD each to either East Africa or South Africa. The Hellas Margarita departed from Oman on September 12, while the Oinoussian Star departed on Thursday. These shipments mark the commencement of commercial operations for the Duqm refinery's ULSD production.
In addition to the ULSD cargoes, OQ8 (Duqm Refinery and Petrochemical Industries Company or Duqm refinery) has also been active in exporting other petroleum products. This month, the refinery exported 59,000 tonnes of naphtha, following its first naphtha cargo in June. Moreover, in August and September, the facility exported an 82,000 tonnes cargo of high-sulphur fuel oil (HSFO) and 93,000 tonnes of low sulphur fuel oil (LSFO). These exports demonstrate the refinery's capability to produce and supply a diverse range of petroleum products to meet regional and international demands.
The Duqm refinery has made substantial progress in its construction and development. As of July, the project was reported to be around 99% complete, according to KPI's Chief Executive, Shafi al Ajmi. The joint venture between OQ and KPI has strategically leveraged their expertise and resources to ensure the timely completion of the refinery, which is poised to become a significant contributor to Oman's energy sector.
The Duqm refinery holds immense potential in bolstering the countries' refining capabilities and strengthening their position in the global energy market. With a refining capacity of 230,000 barrels/day, the facility is well-equipped to refine a variety of crude oil grades, offering flexibility in processing different types of feedstock. Moreover, the production of ULSD, which complies with stringent environmental regulations, underscores the refinery's commitment to sustainability and reducing emissions.
The successful export of ULSD cargoes from the Duqm refinery represents a significant step forward for Oman's energy sector. It not only showcases the country's refining prowess but also highlights its role as a reliable supplier of high-quality petroleum products. The shipments to East Africa and South Africa further strengthen Oman's trade relationships with these regions, fostering economic cooperation and driving growth in the energy sector.
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