UAE and Kuwait Expand Naphtha Exports to Asia via Offshore Transfers

The UAE and Kuwait have increased naphtha exports to Asian petrochemical producers using ship-to-ship transfer operations conducted outside the Strait of Hormuz. Between August and September, ADNOC and Kuwait Petroleum Corporation exported approximately 1.6 million metric tons of naphtha, more than doubling shipments from the March-April period. The surge reflects growing utilization of alternative loading and offshore transshipment hubs including Fujairah and waters off Oman and India.

Published October 15, 2026 Source: Sunsirs

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Traders and industry analysts reported that the UAE and Kuwait have expanded naphtha exports to Asia through ship-to-ship (STS) transfer operations conducted outside the Strait of Hormuz, according to commodity intelligence service SunSirs. Industry shipping data shows that the Abu Dhabi National Oil Company (ADNOC) and Kuwait Petroleum Corporation (KPC) account for nearly half of the total naphtha exports from the Gulf region.

Between August and September, the two state energy producers exported a combined total of approximately 1.6 million metric tons, or 14 million barrels, of naphtha. In contrast, joint export volumes stood at 700,000 metric tons during March and April, when Middle East regional conflicts disrupted global trade in refined oil products.

Arman Ashraf, Director of Asia-Pacific Oil, Gas, and NGLs at consultancy FGE NexantECA, reported a notable increase in direct naphtha loadings at the Port of Fujairah. These supplies comprised transshipments originating from Iraq, Ruwais, and Hamriyah, alongside volumes trucked from other UAE ports to Fujairah for outbound shipment. Trade data indicated that ADNOC's shipping division chartered 25 vessels across August and September to conduct STS transfers totaling around 1.5 million metric tons off the coast of Sohar, Oman.

Following a three-month hiatus, Kuwait Petroleum resumed delivered spot naphtha sales to Japan in late June, with early September deliveries commanding premiums of up to $45 per metric ton over the Japanese benchmark. Kuwaiti officials previously confirmed that STS transfers outside the Strait of Hormuz are operational for crude oil and refined products, with operations frequently positioned off Vadinar on India's west coast. In addition, QatarEnergy offered up to 75,000 tonnes of naphtha for loading at Ras Laffan Port.