Saudi Aramco shuts 400,000-bpd Jazan refinery after Houthi attack damages facility; repairs expected by August 15

Saudi Aramco has temporarily closed its Jazan refinery, which processes 400,000 barrels per day, following a Houthi attack on July 27 that caused significant damage. The attack impacted the refinery's Integrated Gasification Combined Cycle complex and tank farm area, leading to a shutdown that could last until August 15 for repairs.^1234567

The Houthi military spokesman Yahya Saree claimed responsibility for the attack, stating that the group also targeted Aramco facilities in Yanbu. The incident has raised concerns in an already tight fuel market, where gasoline, diesel, and jet fuel supplies are limited, and refining margins have surged.⁸⁹

While a shutdown of less than three weeks may not seem catastrophic, the loss of 400,000 bpd from the Jazan refinery exacerbates existing supply issues. Consultancy IIR noted that the refinery's damage could have broader implications for fuel availability in the region, as inventories were already thin prior to the attack.

Video verified by Reuters showed a large plume of smoke rising from the refinery following the attack, highlighting the severity of the damage sustained during the incident.

As the situation develops, the focus remains on the timeline for repairs and the potential impact on fuel prices and availability in the coming weeks.