Kuwait to tender for $14bn bugdet new oil refinery in this June.


Kuwait National Petroleum Company (KNPC) will launch a tender next month to build a long-delayed refinery at Al-Zour with a capacity of 615,000 barrels per day (bpd), a senior executive at KNPC said .


 “All the contracts might be awarded by early next year and we’re hoping for completion in 2017,” Jamal Al-Loughani, deputy managing director of marketing at KNPC, told the MPGC conference organized by Conference Connection in Bahrain.

 KNPC operates Opec member Kuwait’s three existing refineries, which together have a capacity of 930,000 bpd.Investment in the Al-Zour refinery, estimated to cost around $14.5bn, has been delayed for years due to political wrangling.

 Loughani also said he expected Kuwait to import 40-45 cargoes of liquefied natural gas (LNG) by October 2012, more than it did during the peak summer period from March to October last year.The oil exporter needs to import gas for power generation to meet air conditioning demand in hot summer months.


 Loughani said he expected Kuwait to take delivery of five cargoes in May alone. Kuwait began importing super-cooled gas in 2009 and has term deals to buy it from Royal Dutch Shell and Vitol  from 2010-2013.

 Some facts about this refinery:

Summary Information

  • Also known as Al Zoor Refinery Project
  • Ownership: KNPC
  • Website: http://www.knpc.com.kw/
  • Wiki Page: Al Zour Refinery
  • Location: Kuwait
  • Capacity: 30.75 million tons/annum & 615,000 bbl/day
  • Nelson Complexity:
  • Project Stage: Planning
  • Expected Completion: 2017
  • Budget: 14 bn $

The Project

  • Project Type: Greenfield Refinery
  • Project Summary: The New Refinery Project is a 615,000 bpd grassroots refinery to be built in Kuwait and will consist of over 15 process units plus buildings, utilities and offsite facilities.

Refining Units

  • Residuum Hydrotreater Complex – 330,000 BPSD – Chevron Lummus Global

Terminal Capacity

  • Crude Oil:
  • Refined Products:

Crude Supply

  • Will process Kuwait Export, Medium and Heavy grade crudes

Products Produced

  • The refinery will produce 225,000BPSD of low sulfur Fuel Oil(1.0wt.%Sulfur)to meet the growing demand of power generation plants in Kuwait.
  • Will produce 340,000 bpd of export products

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