The grass root refinery, which is designed to have production capacity of 615,000 barrels per day of crude oil, will be developed in five packages.
The first development package, which is valued at KWD1.28bn ($4.2bn), has been awarded to Technicas, Hanwha Engineering & Construction and Sinopec.
KNPC project manager Khaled Al-Awadhi said that a joint venture of Fluor, Daewoo and Hyundai Heavy Industries has secured the second and third packages, which have a combined value of KWD1.75bn ($5.7bn).
Under the two engineering, procurement and construction (EPC) packages, the consortium will supply variety of key process units, utilities and infrastructure for the refinery. The firms plan to commence the work on the Al-Zour packages in near future.
Saipem and Essar Oil received the fourth package worth KWD475m ($1.57bn) while the fifth KWD454m ($1.5bn) package was awarded to Hyundai Engineering & Construction, Saipem and SK Holdings.
The new refinery is expected to account to 43% of the total refining capacity in the country, and is said to be largest in the Middle East upon completion in 2019.
KNPC CEO Mohammad Ghazi Al-Mutairi said that the company is considering integrating the Al Zour refinery with a proposed petrochemical complex and a liquefied natural gas (LNG) import facility.
Mutairi was quoted by Bloomberg as saying: "Al Zour refinery along with other ongoing mega projects will change the landscape of the oil refining industry in Kuwait."
Designed to meet the demand of low-sulphur petroleum products, the refinery will feature hydro-processing technologies to convert light and heavy crudes into low sulphur fuel oil (LSFO) and lighter products.
Image: The Al Zour refinery, along with other ongoing oil projects, is expected to strengthen Kuwait’s oil refining industry. Photo: courtesy of KNPC.
