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New Refinery Project (Overview)

Owner Kuwait National Petroleum Company (KNPC)
Estimated Value US$ 15,000,000,000
Sector Refinery
Sub Sector Oil Refinery
Country Kuwait
City Ahmadi
Capacity N/A Feasibility Start Date Q3-2013
Status Construction Project End Date Q3-2019
Owner Kuwait National Petroleum Company (KNPC)
Estimated Value US$ 15,000,000,000
Sector Refinery
Sub Sector Oil Refinery
City Ahmadi
Country Kuwait
Capacity N/A
Feasibility Start Date Q3-2013
Status Construction
Project End Date Q3-2019


Project Overview


Background

Kuwait National Petroleum Company (KNPC) is constructing a new world-class grass roots refinery to produce low sulfur fuel oil to replace high sulfur fuel oil used in local power plants. This large scale refinery is designed to process 615,000 barrels per day (bpd) of light Kuwait crude oil or 535,000 barrels per day (bpd) of heavy mix Kuwait crude oil. 

State of the art hydro processing technology, ARDS (Atmospheric Residuum Desulfurization), is used to produce the low sulfur fuel oil from the wide ranging mix of crude oils. The largest ARDS facilities in the world are to be constructed, consisting of six world scale ARDS trains. Over 500 million standard cu ft per day (mmscfd) of hydrogen will be produced in multiple trains to support the conversion from high sulfur to low sulfur products. Other multiple train Naphtha, Kerosene, and Diesel Hydro processing plants will reduce sulfur in their products to ultra-low levels of sulfur. These ultra-low levels will satisfy the most stringent fuel specifications. 

Sulfur is removed from processing by sulfur recovery processes which comply with the most stringent regulations governing emission to the atmosphere, and convert the sulfur to harmless solid form for transportation and sales to world markets.

These refinery processing facilities are supported by a full complement of offsites and utilities infrastructure including receiving and product shipping pier, electrical systems, boilers. Maximum recycle of water is practiced in the refinery to minimize effluents from the facility.

Upon completion, the multi-billion dollar refinery is expected to be the largest in the Middle East and will increase Kuwait’s refinery capacity by 615,000 barrels per day (bdp). It will be a key part of Kuwait’s long term strategy, producing cleaner fuels to meet its electrical power generation growth and demand while adhering to the latest environmental standards.


Scope of Work

Package One (Main Process Plant).

Package Two (Support Process Plant).

Package Three (Infrastructure Services and Utilities).

Package Four (Tank Farms).

Package Five (Offshore Marine Export Facilities).



Finance

Kuwait National Petroleum Company (KNPC) is the client.


Additional Notes

Honeywell, in partnership with Fluor Corporation is conducting the front-end engineering design (FEED) works. Additionally, Honeywell will also provide integrated control and safety system (ICSS). AMEC is the project management consultancy (PMC) contractor and KBC Advanced Technologies is the technical consultant.

New refinery project (NRP) is a very significant one and it places KNPC amongst the first global refining companies in terms of refining capacity and producing environmentally friendly fuel that meets all international environment conditions. NRP can also refine different types of Kuwaiti oil such as Kuwait Export Crude (KEC) and Kuwait Heavy Crude (KHC) produced from west Kuwait.

NRP uses latest technology to comply with stringent environmental regulations to protect the local environment and at the same time produces the latest environmentally friendly ultra-low sulfur diesel fuels for worldwide markets as well as jet fuel, kerosene, and naphtha feedstock for petrochemical plants.


Related Companies



Feed/Design

Pre Qualified

Fluor Corporation
6700 Las Colinas Blvd Irving, TX 75039 U.S.A.
Tel: +1 46 9398 7000
Web: www.fluor.com
Honeywell
India Ltd 56 & 57, Hadapsar Industrial Estate, Hadapsar, Pune 411 013
Tel: +91 20 6603 9400
Email: ACSIndia@honeywell.com
Web: www.honeywellautomationindia.com

PMC

Pre Qualified

AMEC Foster Wheeler
Knutsford No 2 Booths Park Chelford Road Knutsford WA16 8QZ United Kingdom Shinfield Park, Reading, Berkshire RG2 9FW, United Kingdom
Tel: +4 415 6565 2100, +44 118 913 1234
Web: www.amecfw.com

Short Listed

AMEC Foster Wheeler

EPC

Pre Qualified

Daewoo Engineering & Construction
Daewoo E&C 75, Saemunan-ro, Jongno-gu, Seoul, South Korea Kifah Tower 13 Floor, Building No. 9168, Dammam-Khobar Highway, Al-Khobar, 31952, Saudi Arabia
Tel: +82 2 2288 3114, +966 13 857 6596
Web: www.daewooenc.com
Fluor Corporation
6700 Las Colinas Blvd Irving, TX 75039 U.S.A.
Tel: +1 46 9398 7000
Web: www.fluor.com
Hanwha Engineering & Construction
The Federation of Korean Industries Bldg, (150-881) 24, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea Eastern Cement Company Tower, King Fahd Road 3140, Office 506, 5th Floor, Al Khobar 31952, Saudi Arabia
Tel: +82 2 2055 6000, +966 13 881 2194, +966 13 881 2195
Email: skhylee@hanwha.com
Web: www.hwenc.com
Hyundai Engineering Company
HYUNDAI BLDG. 75, YULGOK-RO, JONGNO-GU, SEOUL, 110-920, KOREA Auto-Moto Building, Khaled Bin Walid Street, Al Rakah District 77249, 1st Floor, Office 10, Al Khobar, 31952, Saudi Arabia
Tel: +82 221 341 114, +966 13 845 1088
Web: www.hec.co.kr
Hyundai Heavy Industries (HHI)
1000 Bangeojinsunhwando-Ro, Dong-Gu Ulsan, South Korea
Tel: +8 25 2202 2114
Web: www.hhi.co.kr
Saipem
Via Martiri di Cefalonia, 67, 20097 San Donato Milanese
Tel: +39 025 201
Email: info@saipem.com, media.relations@saipem.com, investor.relations@saipem.com
Web: www.saipem.com
Sinopec
22 Chaoyangmen North Street, Chaoyang District, Beijing, China
Tel: +86 10 5996 0028
Email: ir@sinopec.com
Web: english.sinopec.com/index.shtml
SK Engineering & Construction (SKEC)
SK E&C Building, 192-18 Gwanhoon-dong Jongno-gu, Seoul, South Korea Hyundai Marine Building F11, Guwol-dong, Namdong-gu, Incheon City
Tel: +82 2 3700 7114, +82 32 422 7416
Web: www.skec.com
Tecnicas Reunidas
Cl. Arapiles 13 – 14, 28015 Madrid, Spain Al-Khobar 31952; Kingdom of Saudi Arabia
Tel: +34 91 592 0300, +966 13 806 2500, +966 13 814 8664, +966 13 806 2400
Email: tr@tecnicasreunidas.es
Web: www.tecnicasreunidas.es

Sub-contractor

Pre Qualified

KBC Advanced Technologies
42-50 Hersham Road Walton on Thames Surrey KT12 1RZ UK
Tel: +44 19 3224 2424
Web: www.kbcat.com

Related Contacts


AMEC Foster Wheeler

Name: Brian Parker
Designation: Engineering Manager
Telephone:+965 2325 3306

Fluor Corporation

Name: Mitchley Robert
Designation: Project Manager
Telephone:+965 2398 1773, +965 2398 4373
Name: Mitchley Robert
Designation: Project Manager
Telephone:+965 2398 1773, +965 2398 4373
Name: Otto Kjos
Designation: Project Director
Telephone:+1 28 1263 1000, +965 398 1770

Kuwait National Petroleum Company (KNPC)

Name: Ali Al Hashimi
Designation: Team Leader
Telephone:+965 2320 4874
Email Address: aah027@knpc.net
Name: Khaled Anwar Mohamed Al Awadhi
Designation: Projects Manager
Telephone:+965 2328 1233 Ext: 83901, +965 9786 6854
Name: Osama Al Athawana
Designation: Team Leader
Telephone:+965 2388 3876
Name: Abdul Latheef Pekkadan Mohyuddin Haji
Designation: Senior Document Controller
Telephone:+965 2328 1233 Ext: 84615
Name: Ahmed Al Majed
Designation: Team Leader
Telephone:+965 2388 4623, +965 2328 0601
Name: Fahad Abdul Aziz Humod Al Senan
Designation: Coordinator
Telephone:+965 2328 1233 Ext: 84527
Name: Markarians Fard
Designation: Assistant Technical
Telephone:+965 2328 1233 Ext: 83881
Name: Omar Jassim Abdulla Al Bagli
Designation: Coordinator
Telephone:+965 2328 1233 Ext: 84609


Updates

Jan 2017

Construction works have commenced on the refinery while the project is slated for completion in 2019. 

Aug 2015

Consortium of Saipem and Essar have been awarded the EPC contract on package four of the scheme. 

Jul 2015

Kuwait Petroleum Corporation has approved $2.8 billion in additional funds and package four will be awarded in August 2015.

Jul 2015

EPC contracts have been awarded on four packages of NRP. They are:

  • Package one  - Tecnicas Reunidas, Sinopec, Hanwha Engineering and Construction.
  • Package two and three - Daewoo Engineering and Construction, Hyundai Heavy Industries and Fluor Corporation.
  • Package five - Hyundai Engineering and Construction, SK Engineering and Construction and Saipem.
Jun 2015

Several companies presented their bids on package four with Saipem and Essar being the lowest bidder.

May 2015

All five packages of NRP have been re-tendered. The deadline to submit the bids for package four is on June 23, 2015.

Mar 2015

Several companies presented their bids with Tecnicas Reunidas, Sinopec and Hanwha being the lowest bidder for package one. Consortium of Fluor Corporation, HHI and Daewoo Engineering submitted the lowest bid for package two and three.

Feb 2015

Bids submission extended to March 10, 2015 for Package 1, 2 and 3 (delayed from August 2014).

Dec 2014

Several companies presented their bids for package 4 and 5 with Saipem and Essar being the lowest bidder.

Sep 2014

British firm KBC Advanced Technologies has been appointed as a technical consultant.

May 2014

Invitations to bid (ITB) for the engineering, procurement and construction (EPC) contract has been issued and several pre-qualified companies were invited to submit bids. 

Dec 2013

Honeywell will provide integrated control and safety system (ICSS) and will also deliver front end-engineering and design (FEED) on the scheme.

Oct 2012

Amec has been awarded the project management consultancy (PMC) contract. 

Jul 2012

Several companies presented their bids for the project management consultancy (PMC) contract with WorleyParsons and Amec being the lowest bidder. The award is expected to take place in the fourth quarter of 2012.


Location