PROJECTS: Kuwait plans to re-evaluate petrochemical project

COVID-19's impact on project feasibility and budget would be examined

  
A plant of Samsung Total Petrochemicals is seen in Seosan, about 150 km (93 miles) south of Seoul January 29, 2013.REUTERS/Lee Jae-Won image used for illustrative purpose

A plant of Samsung Total Petrochemicals is seen in Seosan, about 150 km (93 miles) south of Seoul January 29, 2013.REUTERS/Lee Jae-Won image used for illustrative purpose

REUTERS/Lee Jae Won

State-owned Kuwait Integrated Petroleum Industries Company (KIPIC) is planning to re-evaluate the feasibility of its Al Zour Petrochemical Complex Package 3 due to the impact of COVID-19, according to a source.

"The developer is planning to do feasibility study again to evaluate project profitability and budget due to the impact of COVID-19," the source told Zawya Projects, adding that the front-end-engineering-design (FEED) work was completed in June 2020.

He said the prequalified bidders list is anticipated to be released by the end of September 2020.

"The EPC tender is expected to be released by the first week of November," the source said.

In December 2018, the following consortiums and companies had submitted prequalification documents: JV of China Harbour Engineering Co, Saipem, Mepcom Offshore and Marine; JV of Eiffage, Afcons, Daewoo; JV of China State, Archirodon; JV of Kolin and Jan de Nul; JV of Hong Kong River, Yunnan Construction, Muhibbah Engineering, MA Kharafi, and JV of NORINCO International Cooperation, China National Chemical Engineering Co, officials from five companies confirmed with Zawya Projects.

The developer has not shortlisted the prequalified companies due to changes in the scope of work, the source said.

Package 3's scope of work involves the construction of export port, associated facilities and utilities including ground and sea pipelines, a second source told Zawya Projects.

KIPIC is developing a Third Olefins project integrated with Petrochemical Refinery Integration Al Zour (PRIZe) project and also Aromatics 2 complex which would be integrated between Olefins III, Aromatics II and the Al Zour Refinery, the source said.

Amec Foster Wheeler is the FEED consultant; NBK Capital is the financial advisor and Honeywell UOP is the technology provider, the second source said, adding that the project is scheduled to be completed by fourth quarter of 2025.

(Reporting by Senthil Palanisamy; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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