Kuwait Shuts Down Three Refineries After Fire Erupts in Power Plant

January 14, 2004
Dubai |By A Staff Reporter

Kuwait has been forced to shut down its three refineries and the country's fuel exports are at a virtual standstill after a huge fire erupted in a power plant.

Exports of refined products such as naphtha and jet fuel to Asian markets are on hold.

The fire broke out late on Monday in the 200,000 bpd Shuaiba refinery to the south of Kuwait. It forced state-owned Kuwait Petroleum Corporation (KPC) to shut down operations in the 270,000 bpd Mina Abdullah and 442,000 bpd Mina al Ahmadi refineries.

Ahmed Al Mudaf of the Kuwait Petroleum Corporation yesterday told Gulf News exclusively that all three refineries remain closed but there has been no major damage to any of them.

Today the company will announce the dates on which the three refineries will restart. But Al Mudhaf said: "The process to restart the refineries is on course and we will announce when that will be."

In the meantime crude oil traders and tanker brokers in Dubai confirmed to Gulf News that the suspension of naphtha exports and other refined products by Kuwait was in force.

One trader said: "Kuwait has suspended exports of naphtha with immediate effect. If the shutdown continues for any length of time it will have a major impact on the naphtha supply to East Asia."

The Shuaiba refinery was already shut down for maintenance when the fire took place in its power plant and had been from January 3. It was due to reopen on January 22. The two other refineries were running at full capacity when the accident occurred, confirmed Al Mudhaf.    
 
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