Kuwait lets contract for Al-Zour refinery

July 25, 2018
Kuwait Petroleum Corp. subsidiary Kuwait Integrated Petroleum Industries Co. (KIPIC) has let a contract to SNC-Lavalin Group Inc., Montreal, to provide a suite of services related to startup of the grassroots 615,000-b/d Al-Zour integrated refining complex under construction in southern Kuwait.

Kuwait Petroleum Corp. subsidiary Kuwait Integrated Petroleum Industries Co. (KIPIC) has let a contract to SNC-Lavalin Group Inc., Montreal, to provide a suite of services related to startup of the grassroots 615,000-b/d Al-Zour integrated refining complex under construction in southern Kuwait (OGJ Online, June 21, 2018).

As part of the contract, SNC-Lavalin will deliver commissioning management support services, as well as preparation and delivery of training, documentation, and competency development consultancy services for the refinery, the service provider said.

Specifically, SNC-Lavalin will be responsible for commissioning technical services including master plan, startup program development, risk assessment and management, commissioning management support, operations readiness and assurance, project phase execution activities, as well as training, competency development and assurance, documentation preparation, and development of a knowledge management system and e-learning services, software, procedures, and conducting a safe and efficient startup and operations.

SNC-Lavalin valued the contract at about $180 million.

In January, KIPIC confirmed that all five packages of the integrated complex are proceeding in line with the original schedule, with all packages due to be completed by yearend 2019 and initial refining units still on track for startup in May 2019 (OGJ Online, Jan. 22, 2018).

The cornerstone of Kuwait’s Clean Fuels Project to upgrade its refineries to produce clean-burning fuels conforming to Euro 5 standards, the Al-Zour refinery comes as part of KPC’s broader downstream program under its 2030 strategy to enhance growth in its refining and manufacturing sectors, which also includes the upgrade, expansion, and transformation of the 270,000-b/d Mina Abdullah and 466,000-b/d Mina Al Ahmadi refineries into an integrated 800,000 b/d merchant refining complex (OGJ Online, Nov. 28, 2017).

As part of the downstream initiative, KPC subsidiary Kuwait National Petroleum Co. also shuttered its aging 200,000-b/d Shuaiba refinery on Apr. 1, 2017 (OGJ Online, July 31, 2017).

Once completed, the Al-Zour refinery—which will have the largest refining capacity in the Middle East—will predominantly produce low-sulfur fuel oil to replace high-sulfur fuel oil that is presently used in local power generation plants.

Other refinery end-products will include ultra-low sulfur diesel, kerosine, petrochemical naphtha, granulated sulfur, and LPG, SNC-Lavalin said.

Contact Robert Brelsford at [email protected].