01 May 2012

KUWAIT National Petroleum Company (KNPC) has begun shortlisting contractors to build a new KD4-billion ($14.4 billion) oil refinery and upgrade two existing refineries at a total cost of KD8.6 billion ($30.8 billion), according to a report.

The engineering, procurement and construction (EPC) contract involves building a new oil refinery and upgrading of two existing refineries, Bloomberg quoted a KNPC official as saying.

Contractors interested in participating have been invited to collect documents for evaluation by the KNPC as part of the pre-qualification exercise, the company’s deputy managing director for projects Hatem Al Awadhi said, adding that the target was to issue tender documents for both projects by October.

The new refinery – Kuwait’s fourth – in Al Zour will have a capacity of around 615,000 barrels per day (bpd) and be one the largest refining plants in the Middle East, the company said.

The refinery aims to supply power generation plants in Kuwait with environment friendly fuel and provide alternatives for gas imports and heavy fuel consumption.

The contract also involves the clean fuels projects (CFP), which will upgrade two of the country’s three refineries at a cost of KD4.6 billion, said Al Awadhi. Once the new refinery and the CFP are completed, the refining capacity of KNPC will rise to around 1,400 bpd.

“The two projects complement each other and will lead to the processing of high quality petroleum products that will open new market outlets across the world and enhance their competitive ability in those markets,” said Al Awadhi.

The reactors and separation vessel for the project have been ordered, and 36 reactors and six vessels have already been delivered.

KNPC has also issued tender documents for project management consultants for both projects, Al Awadhi said.
The refineries are part of $40.15 billion worth of projects that KNPC has planned to execute shortly.

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