The total value of the Kuwait’s active refining products was $35.3 billion in February 2019 while at the moment it is less than $100 million and this decline is partly attributed to the completion of several major giant refining projects in the country.
Al-Anba quoting MEED magazine said the value of active refining projects in the Middle East and North Africa, has declined amid the ongoing global energy shift away from fossil fuels, in addition to the spread of the Corona pandemic in the region since mid-February 2020 until now.
An analysis of refining projects in the Gulf Cooperation Council countries, Egypt, Libya, Algeria and Iraq showed Kuwait witnessed the largest drop in active oil refining projects during that period, according to data released by MEED Projects, which tracks regional project activity.
The sources added these projects include environmental fuels at a cost of $16 billion, whose final units began operating in September of this year, and also include the $16 billion Al-Zour refinery, which was mechanically completed and is currently in operation. The magazine said there were no new projects worth mentioning or being talked about in the refining sector, or any other oil and gas sectors in Kuwait over the past few years.
It should be noted that the ongoing issues related to the local political situation in Kuwait have increased the dual impact of the Corona pandemic and the global shift towards clean energy. As a result, the decision-making process, including the necessary reforms to support the Kuwaiti economy, faltered, at a time when the opposition in the National Assembly prevented the implementation of Cabinet decisions.
The magazine added there will be a need to increase political stability to see any significant improvement in terms of refining projects in Kuwait during 2022. In the MENA region, Med Projects said the value of active projects in the region currently stands at $93.4 billion, down from its peak of $189.7 billion in February 2019.
The last time refining project activity in this group of countries in the region was evaluated at such a low level was in September 2016. MEED concluded by saying the collapse in demand for refined oil derivatives during the pandemic has forced many refineries around the world to either reduce production of refined products or even stop operations completely.
But the recent recovery in global demand has been a catalyst for reviving operations in many of these facilities. However, project activity in the MENA region remains at low levels.
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