KNPC Prequalifies Bidders For New Refinery, Splits Work Into Four Contracts
Kuwait National Petroleum Co (KNPC) has prequalified 12 companies bidding to construct a new 600,000 b/d refinery, expected to cost $6bn, and will invite formal bids this month. It has also divided the engineering, procurement and construction work into four parts: two focused on refinery units, one for utilities and services, and one for storage tanks and a pier. The prequalified firms are Petrofac International, Technip, Foster Wheeler, GS Engineering and Construction, SK Engineering and Construction, Hyundai Engineering and Construction, Hyundai Heavy Industries, Saipem, Marubeni, Stone and Webster, Washington Group International, Snamprogetti, Tecnicas Reunidas and Dailem Industrial. The refinery is due for completion in 2010 and once on-stream, will replace the ageing Shu'aiba plant which will be decommissioned. The refinery will be built in al-Zour area, some 100km south of the capital near the border with Saudi Arabia.
Kuwaitincreased the planned throughput capacity to 600,000 b/d from 450,000 b/d in February, which will make the plant the largest in the Gulf. Under the first phase of operation, the refinery will produce 225,000 b/d of fuel oil which will be used for power generation with the remaining 375,000 b/d comprising high quality petroleum products. Under the second phase, which will start when Kuwait has sourced sufficient gas to allow a switch to gas in power generation, all fuel oil will be upgraded to petroleum products including diesel, kerosene and high quality petroleum derivatives such as benzene, jet fuel and naphtha. Fluor Daniel is project management consultant for the fourth refinery project (MEES, 22 November 2004). KNPC operates three refineries: Mina al-Ahmadi, Mina ΄Abd Allah and Shu΄aiba in addition to two LPG plants. The production capacity of all refineries amounts to approximately 930,000 b/d.
