Kuwait Oil and Gas Downstream Market - Growth, Trends, and Forecasts (2020-2025)

The Kuwait oil and gas downstream market is expected to grow at a CAGR of over 2.13% during the forecast period of 2020-2025. Factors such as increasing demand for natural gas and rising production of oil and gas in the country are expected to boost the demand for the Kuwait oil and gas downstream market during the forecast period. However, slower investments has been made in the refineries and liquified natural gas (LNG) terminals sector, is expected to hinder the growth of the market.

• The refineries in Kuwait have been stagnant in the 2017 - 2018 period. Most of the refining capacity in the country is owned, by the government-owned, Kuwait National Petroleum Company (KNPC).
• Kuwait's government-owned company is expected to invest in the exploration and production of Kuwait's oil and gas fields. It is likely that the investment would increase production and create an opportunity for cheaper oil and gas for the refineries.
• New investments are expected to be added in the refinery and petrochemical industry. The oil and gas downstream market is expected to witness growth in the forecast period.

Key Market Trends

Oil and Gas Refining Capacity to Witness Growth

• In Kuwait, the capacity refineries had remained stable at 736 Thousand barrels daily (kb/d) from 2017 to 2018. The refinery throughput decreased by 0.5% from 1741 kb/d in 2017 to 1733 kb/d, in 2018. The capacity has remained stable because no new project was installed in the 2017 - 2018 period.
• Kuwait National Petroleum Company (KNPC) operates two refineries, namely Mina Abdullah (MAB) and Mina Al-Ahmadi (MAA). The two Refineries are an integrated refining complex which can change the products on demand from the consumer. The total capacity of the refineries is approximately 736,000 bpd.
• Oil consumption reduced 1.9% to 20.0 Mtoe, in 2018, from 20.4 million tons of oil equivalent (Mtoe), in 2017. The decline in consumption can be attributed to the economic stagnancy in the country and is expected to negatively affect the market.
• Kuwait's oil and gas refining capacity is expected to grow slightly in the forecast period due to an increase in oil production in the country.

Investment in the Downstream Sector to Drive the Market

• Kuwait is a leading exporter of crude oil in the world. Increasing investment in the downstream sector may lead to the country becoming a large exporter of refined oil and petroleum products. In 2018, the country exported 630.4 thousand barrels of petroleum products.
• The oil production in the country increased, by 1.4%, to 146.8 million tonnes, in 2018, from 144.8 million tonnes, in 2017. The increasing oil production is expected to provide a boost to the market.
• The expected cost of the petroleum refinery complex, which is, expected, to be installed in the southern Jordanian city of Ma'an, is to cost nearly 8 billion USD. The refinery, in its first phase, is expected to refine 150,000 barrels of crude oil per day. The project in 2020, is in the proposal stage.
• Hence, the increase of production of oil and an increase in Investment in the downstream sector is expected to drive the market in the forecast period.

Competitive Landscape

Kuwait oil and gas downstream market is consolidated. The major companies include Kuwait Oil Company, Kuwait National Petroleum Company, Petrochemicals Industry Company, Total SA, and BP PLC.

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