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Kuwait's Mina Al Ahmadi refinery was struck for a second time by Iranian drone strikes, another indication of the escalating Middle East conflict and increasing uncertainty in the global energy sector.
Attacks on Kuwait’s flagship refinery have highlighted its role as a major export hub, a pillar of state revenue and a key node in global fuel supply, as well as the growing risks facing Gulf energy infrastructure.
A fire broke out in one of the units of the refinery following drone attacks on Friday, the Kuwait Petroleum Corporation said.
“It caused a fire in several units and prompting the precautionary shutdown of parts of the facility,” the KPC added.
Mina Al Ahmadi's role in Kuwait
The refinery in Al Ahmadi – Kuwait's second-largest city after the capital – is one of two operated by state-owned Kuwait National Petroleum Company.
It is one of the largest in the Middle East and globally, with a capacity of 346,000 barrels per day, according to KNPC.
Gas processing is a key component of KNPC's operations at Mina Al Ahmadi, with its plant comprising five trains and a production capacity of 3.1 billion standard cubic feet of gas and 332,000 of condensate bpd.
KNPC also owns ports and installations dedicated to shipping and exports of petroleum products, including those at Mina Al Ahmadi's north, south and new piers.
Combined, this makes Mina Al Ahmadi crucial to the distribution of petroleum products through the local market, while its output, which includes diesel and other refined fuels, is exported by the hundreds of thousands of barrels to markets across Asia and Europe, forming a key revenue stream for the state.
Analysts say its importance lies in its ability to turn crude into higher-value products. Kuwait has leaned into that strategy in recent years. The Mina Al Ahmadi refinery has been upgraded to produce cleaner fuels in line with international standards, allowing it to compete in stricter export markets.
Export resilience has also been a defining feature. Even during disruption, flows have often continued. Traders note that maintaining shipments is a priority for KNPC, given the country’s reliance on oil revenue.
That makes it a strategic asset and a target. The recent attacks are part of a broader escalation, in which energy infrastructure across the Gulf has been hit, raising fears of wider supply disruption.
Despite these setbacks, Kuwait continues to invest in refining. Alongside newer projects, Mina Al Ahmadi remains central to a system that supports exports, stabilises revenue and anchors the country’s position in global energy markets.
“Energy is the main channel through which geopolitical shocks feed into supply chains,” said Sapna Amlani, supply chains industry practice lead at Moody’s Analytics.
“Even when physical supply isn’t cut, uncertainty alone can drive volatility, which then spreads into freight rates, production costs and corporate margins.”
Kuwait's energy industry
Opec member Kuwait, as of 2025, has about 101.5 billion barrels in crude reserves, ranking it seventh in the world and comprising nearly 6 per cent of total global supply, data from Worldometers shows. It consumes nearly 420,000 bpd.
Its domestic energy production comprises two main components: oil, at more than 90 per cent, and natural gas, at around 9.5 per cent, according to the International Energy Agency. Net energy exports were at about 73 per cent.
Natural gas is Kuwait's favoured energy source, accounting for 52 per cent of its total energy supply, the Paris-based IEA said. Natural gas is particularly important to electricity, which the country is heavily dependent on, as it comprises 63 per cent of power generation.
The global energy market is intertwined, and any disruption could set off a chain reaction, especially in a region such as the Middle East, where a substantial proportion of oil production is concentrated.
