Expanded Ruwais to export gasoil by April: Update

Spanish Market: Crude oil, Oil products
06/02/15

Adds detail on increased jet fuel exports in final paragraphs

Mideast Gulf oil product traders see UAE state-owned refiner Adnoc starting to export gasoil cargoes from the expanded Ruwais refinery, including a 417,000 b/d crude distillation unit (CDU), by the end of March or early April this year.

The new CDU "is running", an Adnoc marketing official confirmed, but his department had not been informed of any cargoes loading by mid-March from the new units. He would neither confirm a new hydrotreater has started operating nor when the CDU will run at full capacity.

Ruwais will have ample gasoil in stock to start exporting by the end of March or early April, a regional trader said. All Ruwais' gasoil output will be 10ppm (0.001pc) ultra-low sulphur diesel but it is unknown when the new plants will start producing on-specification product.

The Ruwais expansion project will more than double the refinery's crude throughput capacity from 400,000 b/d with the addition of the new CDU. The expansion includes a 127,000 b/d residue fluid catalytic cracking unit to maximise the yield of clean fuel products.

Ruwais, which currently produces about 60,000 b/d of gasoline, is scheduled to increase its output by 115pc to about 130,000 b/d when the expansion project is completed. Diesel output will double to about 225,000 b/d, while jet fuel production will rise about 80pc to about 217,000 b/d.

The refinery is already starting to see increased jet fuel exports to areas outside the Middle East, including Europe. Switzerland-based trading firm Mercuria has chartered the Lady Henrietta to ship 90,000t of jet fuel from Ruwais to northwest Europe on 26 February. Mercuria normally carries smaller volumes of product and traders were unsure whether the firm has a downstream system big enough or customers able to take such large quantities of product. The move suggests Mercuria either needs to find buyers or has already sold a cargo in advance and bought jet fuel from the Mideast Gulf.

Shell booked a 90,000t westbound vessel last week to carry jet fuel from Ruwais and Jebel Ali in Dubai on 18 February. And shipping brokers said an 80,000t vessel chartered by Brazil's Petrobas from Ruwais to Brazil on 21 February would be carrying jet fuel and gasoil.

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03/04/26

Iranian done hits Kuwaiti power and desalination plant

Dubai, 3 April (Argus) — A power and water desalination plant in Kuwait sustained "material damage" as a result of an Iranian attack in the early hours of Friday, the country's electricity ministry said. The ministry did not disclose which specific facility was hit, saying only that "some components" were damaged in the attack. The ministry did not immediately respond to a request for comment. Kuwait has eight major power plants dotted along its coast, the majority of which also include desalination units that supply a significant portion of the emirate's fresh water. This is the second attack on Kuwait's power and desalination facilities in less than a week. A service building at an unnamed power and water desalination plant sustained "significant material damage" in an attack in the early hours of Monday . Iran has been responding to US and Israeli strikes on its territory, facilities and infrastructure by launching missiles and drones against targets in Israel and across the Mideast Gulf. Iran's armed forces regularly claim they are targeting regional assets and facilities that have links with Israel or the US, but many of the targets being hit clearly do not. Kuwait, in particular, has been experiencing a spike in hits on its critical infrastructure in recent days. The 346,000 b/d Mina al-Ahmadi refinery came under attack for the third time in two weeks early on Friday. The country's 454,000 b/d Mina Abdullah refinery was also struck in the middle of March. Kuwait International Airport has also been repeatedly struck by Iranian drones over the past month. Fuel depots were most recently hit on 1 April and 25 March, while the airport's radar system was struck on 28 March. Kuwaiti airspace has been closed since the start of hostilities on 28 February. Seven overhead power lines in several parts of Kuwait were also taken out of service late last week after debris falling from intercepted drones damaged the network. This caused partial power outages in some parts of the country. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Iranian crude cargo changes course from India to China

03/04/26

Iranian crude cargo changes course from India to China

Dubai, 3 April (Argus) — A vessel that appeared to be carrying the first Iranian crude cargo to India for close to seven years has now changed course, and is signaling its destination as China, ship-tracking data show. The Aframax Ping Shun , carrying about 600,000 bl of Iranian crude, is now shown heading for Dongying in China after previously signalling its destination as Vadinar in India, according to data from Kpler and Vortexa . The reroute brings the shipment back into Iran's usual export pattern, with China emerging as the main destination for Tehran's heavily sanctioned and discounted crude in recent years. Vortexa data show China took more than 90pc of Iran's crude exports in 2025. The cargo's final destination could still change. Ping Shun , which was sanctioned by the US Treasury's Office of Foreign Assets Control (Ofac) in 2025, is on a time charter to Iran's state-owned oil firm NIOC, ship brokers said. The vessel loaded at Kharg Island in early March. The cargo initially appeared to open a narrow window for India's first known Iranian crude delivery since May 2019, when US sanctions waivers that had allowed limited imports were withdrawn. India had previously supported the trade through alternative payment and marine insurance arrangements. A temporary US waiver issued on 21 March for Iranian crude loaded on or before 20 March and discharged by 19 April briefly revived that possibility. But the waiver did not amount to broader sanctions relief, and market participants said trades involving sanctioned vessels still face heavy compliance scrutiny. Some said payment-related hurdles may also have prompted the reroute. The voyage comes as the US-Israel war with Iran enters its second month with no clear resolution in sight, raising concerns over prolonged supply disruption. US President Donald Trump said on Wednesday that Washington would hit Iran "extremely hard" over the next two to three weeks. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Kuwait's Mina al-Ahmadi refinery hit again by drones

03/04/26

Kuwait's Mina al-Ahmadi refinery hit again by drones

Dubai, 3 April (Argus) — Kuwait's 346,000 b/d Mina al Ahmadi refinery came under another drone attack early on Friday, causing fires in several operational units, state-owned Kuwait Petroleum (KPC) said. It was the third strike on the refinery in just over two weeks. KPC did not specify the extent of the damage or whether refinery operations were affected, but said it was working to maintain operational continuity. No injuries were reported. The refinery was previously hit in the early hours of 19 March, and again early on 20 March, which saw KPC shut a number of affected units as a precaution . Another Kuwaiti refinery, the 454,000 b/d Mina Abdullah plant, was also struck early on 19 March, adding to concerns over the vulnerability of the country's refining system. Kuwait has a third refinery, the 615,000 b/d al-Zour facility, further south, close to the Neutral Zone which Kuwait shares with Saudi Arabia. This latest attack follows weeks of repeated Iranian missile and drone attacks in Kuwait, and elsewhere in the Mideast Gulf region, in response to US and Israeli strikes on Iran. Kuwait's authorities have reported damage to airport and port infrastructure in recent weeks. Its air defenses have intercepted more than 500 drones and 300 ballistic missiles since the US-Israel war with Iran began on 28 February. US president Donald Trump said on Wednesday that military strikes on Iran would continue, dashing hopes for an imminent end to the conflict. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

First non-Iranian VLCC exiting the strait of Hormuz

02/04/26

First non-Iranian VLCC exiting the strait of Hormuz

London, 2 April (Argus) — A very large crude carrier (VLCC) carrying non-Iranian crude appears to have left the Mideast Gulf, the first since the start of the US-Iran war on 28 February, with a second close behind. The Dhalkut , operated by Trafigura according to the vessel's Q88 documentation, largely cleared the strait and was heading eastward as of 2 April. The Habrut , operated by Sinokor according to Q88 data, was on a similar path during the same timeframe. These could be the first two non-Iranian VLCCs to exit the Mideast Gulf since the war began over a month ago, a potential sign of Iran relaxing restrictions on ship movements. Both tankers are signalling Ras Markaz in Oman as their destination, which is a common method being used by ships in the Mideast Gulf to identify the nationality of the vessel and reduce the likelihood of attack by Iranian forces — but it is unlikely to be the vessels' final destination. The Dhalkat loaded Arab Heavy and Arab Medium crude on 26 February from Juaymah while the Habrut loaded Murban crude on 17 March from Jebel Dhanna, Kpler data show, and both have remained inside the Mideast Gulf since. When the Dhalkat first loaded before the war broke out, it appeared to indicate Myanmar as a destination, vessel tracking data show, and it may proceed there after exiting the strait. At least 14 VLCCs have left the strait of Hormuz since the start of March, according to Kpler data, all loaded from Kharg Island or the FPSO Soroosh , both controlled by Iran. Recently, traffic through the strait has been steady, Another seven vessels crossed on Wednesday, the same as on Tuesday. Three vessels exited the Mideast Gulf, and four vessels entered, transiting westbound through the channel, according to vessel tracking data from MarineTraffic. More notably, two ultra-large container carriers linked to China's Cosco — the CSCL Indian Ocean and CSCL Arctic Ocean — which abandoned attempts to transit on 27 March, transited the strait earlier in the week. Iran's Revolutionary Guard Corps said that day that its navy had turned back three container ships attempting to pass through the strait. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Saudi maxes Yanbu flows, taps storage in March

02/04/26

Saudi maxes Yanbu flows, taps storage in March

Doha, 2 April (Argus) — Saudi Arabia's crude exports averaged 5.3mn b/d in March and refined products exports stood at around 800,000 b/d, sources told Argus , after Riyadh successfully rerouted flows to its west coast following the closure of the strait of Hormuz. Crude exports averaged 3.3mn b/d from the Red Sea port of Yanbu and 1.1mn b/d from the kingdom's main Ras Tanura hub, according to trade analytics firm Kpler, bringing the total to 4.4mn b/d. But Saudi Arabia also tapped into its "international storage in Japan, South Korea and the Netherlands for a few days, until rerouted cargoes began arriving at Yanbu," the sources said. Despite the shift, the March figure is well off from pre-war flows in February, when total Saudi crude exports were 7.2mn b/d and refined product exports 1.6mn b/d. The US-Israel war with Iran, which began on 28 February, has effectively halted flows through Hormuz after Tehran began threatening and targeting tankers in and around the strait. This has forced Saudi Arabia and other regional producers to shut in significant volumes of oil and gas output. The kingdom's 7mn b/d East-West pipeline has emerged as a critical strategic asset for both Saudi Arabia and global energy markets. Its ability to rapidly deploy spare infrastructure and reroute exports has reinforced its position as the world's primary supplier of last resort. State-controlled Saudi Aramco began offering Asia-Pacific buyers the option of loading crude from Yanbu during the first week of the war, accelerating the shift towards Red Sea export routes. The East-West pipeline — now Saudi Arabia's primary export outlet — reached full capacity around 25 March , enabling crude exports via Yanbu to climb to around 5mn b/d. The pipeline also supplies roughly 2mn b/d to domestic Red Sea facilities, including 1.5mn–1.6mn b/d to refineries near Yanbu and 400,000–500,000 b/d to the Jizan refinery, as well as power and desalination plants along the coast. Despite the pipeline operating at full capacity, flows remain insufficient to fully offset the loss of Hormuz transit, which previously handled around 15mn b/d of crude. Markets are closely watching the kingdom's ability to sustain flows, particularly after Yemen's Iran-backed Houthi militants launched missiles at Israel on 28 March — marking their first direct involvement since the conflict began. The move raises the risk of further escalation in the Red Sea and around the Bab el-Mandeb, a critical chokepoint for global oil flows. The 1,200km pipeline, linking Saudi Arabia's eastern oil fields to the Red Sea, was developed during the 1980s Iran-Iraq "Tanker War" as part of contingency planning for a potential Hormuz closure. Saudi Arabia has also cut production by around 2.5mn b/d , shutting in several offshore fields — including Safaniya, Marjan, Zuluf and Abu Safa — in response to Iranian missile and drone threats targeting Gulf energy infrastructure. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Expanded Ruwais to export gasoil by April: Update

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