| Also Known As |
: |
New Refinery Project |
| Country |
: |
Kuwait |
| Project Value |
: |
USD 15,000,000,000 |
| Sector |
: |
Oil and Gas | Refinery |
|
Consultants |
: |
Fluor Kuwait
(FEED) |
Foster Wheeler
(Feasibility Study) |
|
PMC |
: |
Fluor Kuwait
|
| Profile Type |
: |
Master Project
|
| Associated Projects |
: |
Contract Package (6) |
|
| On Hold
|
Last Activity:
Planning
|
|
Initial Completion: 2012
|
|
|
|
| Background |
Kuwait National Petroleum CompanyKuwait National Petroleum Company (KNPCKNPC) plans to construct its fourth refinery at Al Zour, Kuwait.
The project aims at producing low-sulfur fuel oil for the country's power plants.
The project will be divided into six packages that include 2 process units, offsites & utilities, tank farm, marine export facilities, and pipeline.
Foster Wheeler is the feasibility study consultant.
Fluor CorporationFluor Corporation is the FEED study consultant and PMC. |
| Latest Events |
In February 2012, the project was put on hold due to undisclosed reasons. The project was initially expected to be completed in 2012. |
| Previous Events |
In October 2011, negotiations between the Supreme Petroleum Council and KNPCKNPC were ongoing. KNPCKNPC was awaiting the final approval to go ahead with the project (the future schedule was not yet revealed.
In May 2011, the Supreme Petroleum Council granted KNPCKNPC initial approval for the ago ahead of the project.
In February 2010, KNPCKNPC announced its plan to re-tender the EPC contracts in 2010 once the Supreme Petroleum Council (SPC) approves the project.
In November 2009, Kuwait Petroleum Corporation approved the re-tendering of the project on lump sum turnkey (LSTK) basis once the Supreme Petroleum Council is formed.
In March 2009, the Kuwaiti prime minister announced that the project was technically and economically not feasible. The letters of intent signed with contractors were cancelled. The Supreme Petroleum Council was expected to re-evaluate the project and decide on re-tendering.
In August 2008, the project faced delays due to political reasons.
In July 2008, The Municipal Council approved the relocation of the refinery in accordance with the Ministry of Oil's demand.
In May 2008, the EPC contracts for 4 packages were awarded. The Marine Works package contract awarded to Hyundai Engineering and Construction Company, the Tankage package contract awarded to Daelim Industrial CompanyDaelim Industrial Company, the Process Plant package 1 awarded to the Consortium of JGC CorporationJGC Corporation and GS Engineering & ConstructionGS Engineering & Construction and the Process Plant package 2 awarded to SK Engineering and ConstructionSK Engineering and Construction.
In April 2008, KNPCKNPC decided to relocate the refinery site one km away from the initially proposed site at an additional cost of USD 375 million.
In March 2008, the Offsites and Utilities package was awarded to Fluor CorporationFluor Corporation.
In October 2007, the ITB for four main packages (marine, process, and tank farm) was issued
In May 2007, KNPCKNPC doubled the project's budget to USD 12 billion and changed its contracting strategy to tender the EPC contracts on a cost reimbursable basis instead of LSTK basis to reduce the impact of rising EPC costs and to attract more contractors.
In March 2007, KNPCKNPC cancelled the original EPC tendering results due to high budget requirements.
In November 2004, the PMC and FEED study contracts were awarded to Fluor corporation.Fluor corporation. |
| Scope of Work |
Construction of Al Zour refinery including:
Package 1: Process Units
- 3 Crude distillation units of 205,000 bpd each
- 3 atmospheric residue desulfurization (ARDS) units of 110,000 bpd each
- 3 diesel hydrotreating units (DHTU) of 62,000 bpd each
- 2 naphtha hydrotreating units (NHTU) of 18,000 bpsd each
- 2 kerosene hydrotreating units (KHTU) of 53,000 bpd each
- 2 saturated gas units (SGU) of10,000 bpd LPG
- 1 heavy oil cooling (HOC) unit and flare system.
Package 2: Process Units
- 1 hydrogen recovery unit (HR)
- 1 hydrogen compression unit (HC)
- 4 hydrogen production units (HPU) of 145 MM cu.ft./d each
- 3 sour water stripper units (SWS) of 2,000 gpm each
- 3 amine regeneration unit (ARU) of 5,700 gpm each
- 3 sulfur recovery units (SRU) and tail gas treating unit (TGTU) of 1,000 mt/day each
- 1 sulfur conveying system and sulfur palletizing
- 1 acid gas flare system
Package 3: Offsites & Utilities
- Main Power Distribution system
- A Steam Generation unit
- Air Systems
- Central Cooling Water and Distribution
- Water Systems
- Wastewater Treatment Facilities
- Overall Site Preparation
- An Administration Building Complex
- Enterprise Integration and Communication Systems
- Inter-refinery Transfer Pipelines
Package 4: Tank Farm
Package 5: Marine Export Facilities
- Small boat harbor
- Solids pier
- Sea island for product ship loading
- Subsea pipelines and related facilities
Package 6:Pipeline
3 pipelines and all related facilities |
| Contract Packages |
| Type |
Project Name |
Contract Value |
 |
KNPC - Al Zour Refinery - Package 1 (Process Plant) |
USD 4,000,000,000 |
|
KNPC - Al Zour Refinery - Package 2 (Process Plant) |
USD 2,600,000,000 |
|
KNPC - Al Zour Refinery - Package 3 (Offsites & Utilities) |
USD 2,000,000,000 |
|
KNPC - Al Zour Refinery - Package 4 (Tankage) |
USD 1,184,000,000 |
|
KNPC - Al Zour Refinery - Package 5 (Marine Works) |
USD 1,120,000,000 |
|
KNPC - Al Zour Refinery - Pipeline |
USD 500,000,000 |
|
| Project News |
|
|
| Schedule | Contract Phase/Phase | Description |
| Nov 2004 |
PMC | Contract awarded to Fluor CorporationFluor Corporation | | | FEED | Contract awarded to Fluor CorporationFluor Corporation
|
| Mar 2007 |
EPC | Original Tender cancelled
|
| Jun 2007 |
EPC | Pre-qualification launched for retendering
|
| 03 Jul 2007 |
EPC | Pre-qualification documents submitted
|
| Oct 2007 |
EPC | ITB issued for four main packages (process, marine and tank farm)
|
| Mar 2008 |
EPC | Offsites and Utilities (Package 3) awarded to Fluor Coporation
|
| May 2008 |
EPC | Contracts for packages 1,2,4 and 5 awarded
|
| Jul 2008 |
Planning | Municipal Council approved the site relocation of the refinery
|
| Q2 2011 |
Planning | The Supreme Petroleum Council granted KNPCKNPC initial approval for the ago ahead of the project
|
| Feb 2012 |
Planning | Project put on hold
|
|
|
|
Key:
Master Project
Contract Package
|
|
 |
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