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Kuwait's oil refining industry faces challenges

KUWAIT, June 26 (KUNA) -- Refining industry in Kuwait is facing some challenges that warrant greater efforts to tackle and attain the country's strategic goals in the sector, according to a report.
The report, released by Kuwait Diplomatic Center for Strategic Studies, indicated that these challenges are related to the industry's nature itself and investments.
Heavy crudes are naturally different from light oils, with diverse transportation and refining difficulties, largely due to divergent crudes' densities and disposable substances.
Heavy crudes require more complex refining processes, and there are difficulties in producing derivatives, and this lead to higher contamination to the environment, where Kuwait is doing its best to minimize such harmful outcome.
On the investment dimension, the report notes unstable supply and demand in the markets, thus creating uncertainties with respect of requirements, production and proceeds. This situation has prompted producers to revise expansion schemes, with intention to cut cost of production and minimize losses.
Moreover, there is strong competition on part of new comers in the field, namely China, India, Indonesia, Malaysia and Vietnam, in addition to other Gulf countries. (end) osj.rk