Bahrain's sole oil refiner BAPCO Energies has shipped out its first diesel cargo to Australia in nearly two-and-a-half years, data from shiptrackers and three trade sources showed, as it ramps up production and exports amid a capacity expansion.
Around 400,000 barrels of diesel were loaded on the Torm Kirsten during December 9-11 from BAPCO's Sitra refining site, Kpler and Vortexa shiptracking data showed, while 140,000 barrels more were loaded via ship-to-ship transfers with the vessel Zonda.
Torm Kirsten is expected to arrive at Australia's Kwinana port between late December and early January, the shiptracking data showed.
The vessel was chartered by TotalEnergies' shipping arm, the trade sources said, with most of BAPCO's export sales conducted by the French oil major after the two companies signed a deal in 2024 to increase cooperation.
However, Bahrain's continued exports to markets to the east of Suez are likely to remain subject to whether the arbitrage export window is profitable, traders say, as Asia's trading position remains long and northwest Europe is a traditional net importer.
BAPCO Energies did not immediately comment on the matter. TotalEnergies declined to comment.
BXT Trading, the new trading and sales joint venture between BAPCO and TotalEnergies, will be the main entity handling Sitra's ongoing refined fuel export sales, two separate trade sources familiar with the matter said.
BXT Trading's main office is in Dubai, with several executives and sales personnel already based there, they said.
Sitra refinery's naphtha output is expected to rise by 22,000 bpd in 2026, while gasoil and jet fuel production are likely to increase by 40,000 bpd and 24,000 bpd, respectively, with product yields to "stabilise by the end of December or January," FGE NexantECA analysts said in a client note.
BAPCO has been increasing exports of both jet fuel and diesel since last month, Kpler and Vortexa shiptracking data showed, with diesel volumes at an unprecedented high of around four million barrels for November and jet fuel averaging at three million barrels.
Production levels have risen from 265,000 barrels per day to 380,000 bpd, a December 7 company press release said, though the timeline was not specified.
(Reporting by Trixie Yap; additional reporting by Ariba Shahid; Editing by Sonia Cheema)
