Equipment arrives for Kuwait’s Al-Zour integrated refining complex

The first modules have been delivered for newly formed Kuwait Petroleum Corp. (KPC) subsidiary Kuwait Integrated Petroleum Industries Co.’s (KIPIC) grassroots 615,000-b/d Al-Zour integrated refining complex under construction in southern Kuwait.

Content Dam Ogj Online Articles 2018 06 180621 Fluor Alzour Sailaway Final

The first modules have been delivered for newly formed Kuwait Petroleum Corp. (KPC) subsidiary Kuwait Integrated Petroleum Industries Co.’s (KIPIC) grassroots 615,000-b/d Al-Zour integrated refining complex under construction in southern Kuwait (OGJ Online, Jan. 22, 2018).

The first 14 of the 188 modules built at the COOEC-Fluor Heavy Industries Co. Ltd. fabrication yard in Zhuhai, China, were loaded onto a shipping barge and sailed away in May and have arrived in Kuwait, Fluor Corp. said.

Remaining modules are under construction at the Zhuhai fabrication yard, the service provider said.

The equipment delivery follows the previous award of two contract packages worth an estimated $5.75 billion to a joint venture of Fluor, Daewoo Engineering & Construction Co., and Hyundai Heavy Industries Co. for delivery of engineering, procurement, fabrication, and construction on associated units, utilities, and infrastructure necessary for the project (OGJ Online, Oct. 13, 2015).

“Fluor and our joint venture partners are working closely with KIPIC to implement Fluor’s integrated engineering, procurement, fabrication, and construction solutions across every phase of the project to enable the safe and efficient construction, commissioning, and start-up of this new refinery,” said Al Collins, president of Fluor’s energy and chemicals business in Europe, Africa, and the Middle East.

Content Dam Ogj Online Articles 2018 06 180621 Fluor Alzour Sailaway Final

KPC most recently said initial refining units are on track to enter operation in May 2019, with all packages for the project scheduled to be completed by yearend 2019 (OGJ Online, Mar. 23, 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).

KPC formed KIPIC in late 2016 to manage refinery, petrochemicals, and LNG import operations in the Al-Zour complex. Also charged with securing Kuwait’s local demand for energy and contributing to growth of the private sector, KIPIC is Kuwait’s first integrated downstream company as well as the KPC arm responsible for achieving integration between the refining and petrochemical industries.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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