Wedoany.com Report-Dec.24, Bahrain's sole oil refiner, BAPCO Energies, has shipped its first diesel cargo to Australia in nearly 2.5 years, according to data from shiptrackers and three trade sources. This development reflects the company's ongoing efforts to increase production and exports following a major capacity expansion at its Sitra refinery.

Around 400,000 barrels of diesel were loaded onto the Torm Kirsten between December 9 and 11 from the Sitra refining site, with Kpler and Vortexa shiptracking data confirming an additional 140,000 barrels transferred via ship-to-ship operations with the vessel Zonda.

The Torm Kirsten is expected to arrive at Australia's Kwinana port between late December and early January. The vessel was chartered by TotalEnergies' shipping arm, with most of BAPCO's export sales handled by the French oil major under a cooperation agreement signed in 2024.

BXT Trading, the new joint venture between BAPCO Energies and TotalEnergies, will serve as the primary entity managing Sitra's ongoing refined fuel export sales. The venture's main office is located in Dubai, where several executives and sales personnel are already based.

BAPCO Energies has been steadily increasing exports of both jet fuel and diesel since last month. Shiptracking data indicate diesel volumes reached an unprecedented high of around 4 million barrels in November, while jet fuel averaged 3 million barrels.

A company press release dated December 7 stated that production levels have risen from 265,000 barrels per day to 380,000 barrels per day, though no specific timeline for the full ramp-up was provided.

Analysts at FGE NexantECA noted that Sitra refinery's naphtha output is expected to increase by 22,000 barrels per day in 2026, with gasoil and jet fuel production projected to rise by 40,000 barrels per day and 24,000 barrels per day, respectively. Product yields are anticipated to stabilize by the end of December or January.

Continued exports to markets east of Suez, including Australia, will depend on the profitability of the arbitrage window. Asia's trading position remains long, while northwest Europe serves as a traditional net importer.

BAPCO Energies did not immediately comment on the shipment. TotalEnergies also declined to comment.

This cargo marks a significant milestone as BAPCO Energies optimizes output from its expanded Sitra facility, enhancing its role in regional and global refined products supply.