Kuwait Invests $40 Billion in Clean Fuels, Refineries

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Kuwait National Petroleum Company's (KNPC) Clean Fuels project will include the expansion and modernization of the Mina Al Ahmadi and Mina Abdullah refineries, with a focus on producing high-grade products, such as diesel fuel and kerosene, for export. This will be in addition to the construction of the Al Zour refinery. KNPC will invest a total of $40 billion in the projects.

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The Al Zour project is scheduled for completion in 2019; with a capacity of 615,000 barrels per day (BBL/d), it will be the largest refinery project in the Middle East. With Al Zour in view, plans are being developed to close and dismantle the country's 60-year-old, 200,000-BBL/d Shuaiba refinery.

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Currently, Kuwait has three refineries, with a combined capacity of 930,000 BBL/d. In the project plan, Al Ahmadi's capacity will drop from 466,000 BBL/d to 347,000 BBL/d, and Mina Abdullah's will rise from 270,000 BBL/d to 454,000 BBL/d. These projects are scheduled for completion between 2018 and 2022.

In February, contracts worth about $12 billion were awarded to international companies--including JGC Corporation (OTC:JGCCF) (Yokohama, Japan), Petrofac (LSE:PFC.L) (St. Helier, Channel Islands) and Fluor Corporation (NYSE:FLR) (Irving, Texas)--for construction work. KNPC's investment banking division is advising on financial options for the project.

For related information, see April 16, 2014, article - Mega-Tenders Due from Kuwait's $15 Billion Refinery, February 13, 2014, article - Samsung Engineering Wins $3.8 Billion EPC Contract for Kuwait's Clean Fuel Refinery and December 6, 2013, article - Kuwait National Petroleum Company Awards Honeywell Major Contract for Al Zour Refinery.

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