Page 4 - DMEA Week 38 2021

DMEA COMMENTARY DMEA

CFP in full flow as Kuwait

eyes overseas expansion

Kuwait has started operations at the first of two giant downstream
projects while it moves to expand its refining footprint internationally.

MIDDLE EAST KUWAIT National Petroleum Co. (KNPC) of 50,000 bpd – between mid-August and early
this week began full operations at two refiner- September.
ies recently upgraded and expanded under the In early June, KNPC, the downstream-fo-
WHAT: 800,000 barrel per day (bpd) Clean Fuels Project cused subsidiary of Kuwait Petroleum Corp.
The 800,000 bpd Clean (CFP). Meanwhile, work is nearing completion (KPC), announced the completion of a new
Fuels Project has now on Kuwait’s latest addition to its overseas refining hydrocracking unit at the Mina Abdullah refin-
launched, improving portfolio. ery, signalling the finalisation of work on the
product quality and CFP. The completion of works also happened a
increasing volumes. CFP start-up month ahead of its updated schedule.
The $15.6bn overhaul entailed raising through- Meanwhile, fellow KPC subsidiary Kuwait
WHY: put capacity at the Mina Abdullah and Mina Integrated Petroleum Industries Co. (KIPIC)
Kuwait has a target of Al-Ahmadi refineries to 454,000 bpd and is nearing completion on the project it was set
increasing domestic 346,000 bpd respectively, while improving envi- up to manage, the new Al-Zour refinery that is
refining capacity to ronmental performance and facilitating the pro- expected to come on stream in November. Add-
1.6mn bpd by 2025, while duction of cleaner fuels in line with Euro-IV and ing a further 615,000 bpd to Kuwait’s refining
its overseas portfolio is Euro-V standards. capacity, the project is estimated to cost around
also growing. The full start-up came in ahead of the early $16.1bn, including the cost of associated petro-
2022 kick-off included in a timeline updated chemical and LNG facilities.
WHAT NEXT: to factor in delays relating to coronavirus Movement on the development has sped up
Given the time it has (COVID-19). of late and London-listed Technip Energies was
taken to complete these According to downstream-focused KNPC, recently awarded a six-year contract for engi-
projects, KPC may the CFP is “a major pillar” in its and parent firm neering and management services across the
look to acquire a stake Kuwait Petroleum Corp.’s (KPC) strategy of rais- Al-Zour complex.
in established units ing the country’s refining capacity to 1.4mn bpd The project was reported to have reached
overseas to push its in the medium term “in addition to fulfilling the 98.67% completion following a site visit by Prime
global refining footprint highest possible rate of energy processing at local Minister Sheikh Sabah Al-Khaled Al-Hamad
towards 2mn bpd. refineries to meet the local and international Al-Sabah in early September.
demand of high-quality petroleum products.” Once complete, Al-Zour will take Kuwait’s
A report by the state-owned Kuwait News throughput capacity to 1.415mn bpd, while the
Agency (KUNA) quoted the refining capacity country has previously spoken of plans to reach
target as 1.6mn bpd by 2025. 2mn bpd.
KNPC launched three units at Mina Abdul-
lah – a continuous catalytic reforming unit, a Overseas outlook
vacuum rerun unit and an atmospheric residue While significant progress is being made domes-
desulphurisation (ARDS) unit with a capacity tically, Kuwait is also moving to expand its

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