Kuwait is planning to more than double its tanker fleet over the next twodecades, as it aims to secure future crude oil and product supplies, KuwaitPetroleum Corp CEO Nizar al-Adsani Monday said.
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The massive expansion could take Kuwait's total fleet to 60 vessels by 2040from 28 vessels currently, Adsani told delegates at the Middle East Petroleumand Gas conference in Abu Dhabi.
"To service KPC's international marketing trade requirements, we will expandour fleet, especially for product carriers," Adsani said.
Kuwait Oil Tanker Co., a subsidiary of KPC, currently operates 12 crude oiltankers, along with four vessels for LPG, 10 for oil products and twobunkering vessels.
It will add two more crude oil vessels by 2020, and have 18 of such vessels by2040, under the expansion plan. At the same time, it will also add one moreLPG vessel and 11 more oil product tankers over the period.
SUPPORTING UPSTREAM AND DOWNSTREAM EXPANSION
The fleet expansion will support OPEC members' ambitions to ramp up crude oilproduction, as well as its downstream sector under a newly approved 2040strategy.
The first step will be to reach 4 million b/d of crude oil production capacityby 2020, up from around 3.2 million b/d currently, before aiming for atargeted 4.75 million b/d by 2040. Nearly $400 billion will be needed toachieve the target.
At the same time, KPC wants to significantly build-up its downstream sector,with a planned capacity of 2 million b/d by 2035, from 936,000 b/d currently.
Outside of Kuwait, Adsani said KPC wants to secure 1.3 million b/d ofdownstream capacity for its crude oil by 2035. It is expected to have 300,000b/d in 2020, when it will supply crude to its 200,000 b/d Nghi Son refinery inVietnam and its 268,000 b/d Milazzo refinery in Sicily. It will capturefurther crude oil outlets by 2021, with the completion of the 230,000 b/d Duqmjoint venture refinery in Oman.
Kuwait is also looking to India for growth. It revealed earlier this monththat it hopes to sign a deal to buy a stake in an as yet unidentified Indianrefinery.
--Adal Mirza, firstname.lastname@example.org
--Edited by Norazlina Jumaat, email@example.com