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DMEA: Fire at Al-Zour refinery, Kuwait

Kuwait’s 615,000 barrel per day (bpd) Al-Zour refinery suffered a fire on July 3, which was promptly put out by Kuwait Integrated Petroleum Industries Co (KIPIC) with no casualties, according to a statement made by company spokesperson Abdullah Fahad Shabib Al-Ajmi.

Al-Aimi said that the refinery was now back to work, continuing production and export operations.

"The fire broke out in Unit No. 12 and we need a thorough investigation to find out the cause," He added. Al Zour – currently Kuwait’s newest refinery – recently issued its first tender for sales of fuel oil after an eight-week gap in production due to a partial shutdown in May, according to trade sources at the time.

The plant’s low sulphur fuel oil (LSFO) tenders have been under close observation from market participants due to its potential to be a major LSFO exporter once full production begins. The refinery will provide stiff competition to refiners located in the Middle East and Asia when this goal is reached. Expectations of a resumption in production at Al Zour caused Asia’s margin for matine and power generation fuel to ease by around 3% in May, according to Refinitiv.