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78808
Mon, 09/07/2009 - 14:37
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https://www.oananews.org//node/78808
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Exports of UAE's refined petroleum products to rise
Abu Dhabi, Sept 7, 2009 (WAM) - Stagnant demand and increasing production will help the UAE raise exports of refined petroleum products by 26 per cent next year, shows a new research according to a report in "Emirates Business.
While this phenomenon holds particularly true for diesel, the country is also exporting more jet fuel and to a lesser extent fuel oil, said PFC Energy in its report.
"The UAE – and in particular Abu Dhabi – has benefited in this respect from stagnant diesel consumption, which now stands flat year-on-year. While the emirate's tight balance forced a near-complete halt of exports in 2008, this year's sales has seen a relative bounty which have so far averaged 12,000 barrels per day in seven months to July," wrote Raja Kiwan, Dubai-based analyst with PFC Energy, in the report.
Higher supply from refineries, particularly condensate splitters, has ensured an enhancement in overall export volumes by 100,000bpd. "But demand has not been the only factor supporting a looser domestic market; the supply ledger has improved markedly in recent months as PFC Energy had previously projected. With higher volumes of condensates being fed into the emirate's condensate splitters – which we estimate at 155,000bpd versus 100,000bpd in 2008— Abu Dhabi has been able to push overall product supplies up by about 100,000bpd to 368,000bpd in the first seven months of 2009," said Raja.
Abu Dhabi has total refining capacity 508,000 barrels a day.
Besides diesel, the main beneficiary of this boost has been jet fuel and to a lesser extent fuel oil, which jointly have supported the surge in total refined product exports. At the current rate, it is expected that the total exports of refined products will average 198,000bpd, up from 160,000bpd with a further jump to more than 215,000bpd [a 26 per cent increase over 2008] in 2010, said Kiwan.
The year 2008 proved to be particularly costly due to rising cost of imports in some cases and loss of revenues from diminished refined product exports in others. This year has brought relief to some, but not all, said Kiwan, pointing to countries like Kuwait.
Kuwait is expected to emerge as a net importer of petrol by 2011-12, said Kiwan. "The country's lack of attention towards growing petrol consumption means that production highs of 69,000bpd will be just sufficient to supply domestic needs, with already negligible exports disappearing completely by 2010. Given that the country's 615,000bpd Al Zour refinery will unlikely see completion before at least 2014, Kuwait could find itself importing petrol as soon as 2011-12."
The situation is better in Qatar. "Qatar's structural diesel deficit has not yet been alleviated due to the delay in commissioning the 146,000 bpd Ras Laffan condensate splitter. As a result, imports have climbed marginally to 13,000bpd in the first half of the year compared to 8,000 bpd in the same period of 2008, as demand continues to rise less quickly," said Kiwan.
Oman on the other hand is set to widen its trade surplus to 65,000bpd from 46,000bpd in 2008, said Kiwan. In Saudi Arabia, the demand is growing most rapidly for petrol, while refining production has dropped, prompting imports at record levels [reaching a peak of 124,000bpd in July], he said. However, in case of fuel oil, the kingdom is expected to post a surplus of 135,000 bpd in 2009. – Emirates Business 24|7
While this phenomenon holds particularly true for diesel, the country is also exporting more jet fuel and to a lesser extent fuel oil, said PFC Energy in its report.
"The UAE – and in particular Abu Dhabi – has benefited in this respect from stagnant diesel consumption, which now stands flat year-on-year. While the emirate's tight balance forced a near-complete halt of exports in 2008, this year's sales has seen a relative bounty which have so far averaged 12,000 barrels per day in seven months to July," wrote Raja Kiwan, Dubai-based analyst with PFC Energy, in the report.
Higher supply from refineries, particularly condensate splitters, has ensured an enhancement in overall export volumes by 100,000bpd. "But demand has not been the only factor supporting a looser domestic market; the supply ledger has improved markedly in recent months as PFC Energy had previously projected. With higher volumes of condensates being fed into the emirate's condensate splitters – which we estimate at 155,000bpd versus 100,000bpd in 2008— Abu Dhabi has been able to push overall product supplies up by about 100,000bpd to 368,000bpd in the first seven months of 2009," said Raja.
Abu Dhabi has total refining capacity 508,000 barrels a day.
Besides diesel, the main beneficiary of this boost has been jet fuel and to a lesser extent fuel oil, which jointly have supported the surge in total refined product exports. At the current rate, it is expected that the total exports of refined products will average 198,000bpd, up from 160,000bpd with a further jump to more than 215,000bpd [a 26 per cent increase over 2008] in 2010, said Kiwan.
The year 2008 proved to be particularly costly due to rising cost of imports in some cases and loss of revenues from diminished refined product exports in others. This year has brought relief to some, but not all, said Kiwan, pointing to countries like Kuwait.
Kuwait is expected to emerge as a net importer of petrol by 2011-12, said Kiwan. "The country's lack of attention towards growing petrol consumption means that production highs of 69,000bpd will be just sufficient to supply domestic needs, with already negligible exports disappearing completely by 2010. Given that the country's 615,000bpd Al Zour refinery will unlikely see completion before at least 2014, Kuwait could find itself importing petrol as soon as 2011-12."
The situation is better in Qatar. "Qatar's structural diesel deficit has not yet been alleviated due to the delay in commissioning the 146,000 bpd Ras Laffan condensate splitter. As a result, imports have climbed marginally to 13,000bpd in the first half of the year compared to 8,000 bpd in the same period of 2008, as demand continues to rise less quickly," said Kiwan.
Oman on the other hand is set to widen its trade surplus to 65,000bpd from 46,000bpd in 2008, said Kiwan. In Saudi Arabia, the demand is growing most rapidly for petrol, while refining production has dropped, prompting imports at record levels [reaching a peak of 124,000bpd in July], he said. However, in case of fuel oil, the kingdom is expected to post a surplus of 135,000 bpd in 2009. – Emirates Business 24|7
