Page 8 - DMEA Week 25 2022
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DMEA REFINING DMEA
KIPIC starts test runs at Al-Zour
MIDDLE EAST KUWAIT’S Integrated Petroleum Industries Co. Meanwhile, Kpler noted that the start-up of
(KIPIC) has begun test runs at its giant green- the refinery’s first CDU has already resulted in
field Al-Zour refinery in the south of the country, a drop in Kuwait’s exports as it looks to derive
marking the start of the facility’s commissioning. more value from the hydrocarbon value chain.
One of the refinery’s three 205,000 barrel per Crude exports dropped by 101,000 bpd from
day (bpd) crude distillation units (CDUs) started May to 1.75mn bpd, Kpler said, while product
up last week, according to IIR Energy, with the exports are expected to increase.
CDU to be fully commissioned later in the sum- KIPIC had set a target commissioning date
mer. The report said that the second and third for Al-Zour of late 2020, pushing this back to
CDUs would be commissioned in October and 2021 – then 2022 – as restrictions relating to
December, as the facility ramps up towards it full coronavirus (COVID-19) slowed progress. Sev-
615,000 bpd capacity. eral services firms and contractors involved in
KIPIC, a subsidiary of state oil firm Kuwait the development of Al-Zour were reported to
Petroleum Corp. (KPC), was set up to oversee have attempted to invoke force majeure with
the $16bn project’s implementation and to man- restrictions having made it impossible to meet
age and operate the integrated refining, petro- deadlines.
chemicals and new regasification terminal, LNG Reports in January said that commissioning
Import (LNGI), which has a capacity of 22mn of the facility’s hydrogen unit had been com-
tonnes per year (tpy). pleted with a 49,000-tonne cargo of naphtha
Speaking during the Qatar Economic Forum delivered for use in commissioning.
this week, KPC CEO Sheikh Nawaf Al-Sabah Once complete, Al-Zour will take Kuwait’s
said: “We’ve already worked in the commission- throughput capacity to 1.415mn bpd following
ing stages. The hydrocarbons are in the system. the recent completion of the long-awaited Clean
It’s a hot site now.” Fuels Project (CFP), while the country has previ-
He added that KPC has been receiving inter- ously spoken of plans to reach 2mn bpd.
est from European buyers regarding refined IIR said that the plant’s slate will comprise
products ahead of Al-Zour’s launch. “We’re get- 62,000 bpd of diesel, 53,000 bpd of kerosene and
ting more calls for products … By the end of the 18,000 bpd of naphtha by the end of July. These
year, we’ll have about 615,000 [bpd of oil] being figures will increase to 186,000 bpd, 106,000 bpd
converted into mostly diesel and very low sul- and 36,000 bpd by the end of the year.
phur fuel oil,” he said. Homayoun Falakshahi, a senior commodity
“Right now there is a tremendously good analyst at Kpler, said that Kuwaiti crude exports
market for fuel oil, and whether it’s bunker or are anticipated to “fall below 1.4mn bpd by year-
diesel or whatnot. And we’ll use that. We will end, further intensifying the shortage of medium
supply the world with that,” he told Bloomberg. sour barrels.”
P8 www. NEWSBASE .com Week 25 23•June•2022
