According to WPB, bitumen availability for export from Bahrain is set to contract in the near future as the state-owned Bapco refinery in Sitra undergoes scheduled maintenance and continues its transition under a major modernisation initiative. Sources among global bitumen traders and importers confirm that output from the 267,000 barrels-per-day facility will be affected as part of operational adjustments linked to the plant’s ongoing upgrades.
The upcoming shutdown of the vacuum distillation unit (VDU), a core component in bitumen production, is anticipated to significantly limit the refinery’s capacity to supply export volumes. Market players familiar with the refinery’s operations noted that the maintenance period is expected to span several weeks. During this interval, waterborne bitumen shipments will reportedly be suspended, with existing stocks prioritized for internal demand. No further technical details regarding the maintenance duration or extent have been disclosed.
Currently, seaborne bitumen offers from Sitra remain stable at $370 per tonne on a free-on-board basis—unchanged for several weeks. However, shipping data from analytics provider Kpler reveal recent and upcoming movements of the Sidra Al Wakra vessel, which loaded a 3,100-tonne cargo from Sitra for delivery to Qatar. Another similar cargo is scheduled to be loaded shortly, though it remains uncertain whether this will be the final shipment before operations pause.
Export interest in Bahraini bitumen has diminished throughout the year due to more competitive pricing from regional rivals. Iranian suppliers, in particular, have drawn attention by offering considerable discounts. On average, Iran’s bulk bitumen prices have trailed Bahrain’s fob rates by $109.90 per tonne throughout the year, with the gap widening to as much as $201 per tonne during previous market cycles. As of a recent assessment, Iranian cargoes were priced at $342.50 per tonne—$27.50 below Bahrain’s listed rate. Current demand for Bahraini bitumen is primarily limited to select markets such as Qatar, the UAE, and South Africa’s Durban port, where buyers have specific grade requirements not met by alternative suppliers.
Simultaneously, the Sitra refinery continues to progress through the $7 billion Bapco Modernisation Project (BMP). This long-term upgrade is designed to boost overall processing capacity to 380,000 barrels per day. Although the facility’s enhancement is expected to enhance production of higher-value middle distillates, it also implies a reduced share of heavier outputs, including bitumen, especially with the activation of new secondary processing units. Full details on the status and output configuration of these units remain unavailable.
With export constraints looming and structural shifts in product output underway, stakeholders across the region are closely monitoring the evolution of Bahrain’s position in the international bitumen market.
By Bitumenmag
Bitumen, Refinery, Price
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