Page 9 - DMEA Week 31

DMEA fuels DMEA
KNPC to increase storage and fuel capabilities
middle east
KuWAIT National Petroleum Co. (KNPC) has announced this week it has received approval for plans to construct 11 petroleum product tanks in the Northern Jahra governorate. e project is part of e orts to expand existing storage facilities in Matla, where there are already 7 tanks.
Comments in Arabic to Kuwaiti daily Alseyassah were translated by omson Reuters: “KNPC has received land for the project and is in the process of preparing engineering designs ... the project has been approved by the compa- ny’s board and tenders will be issued once it is approved by the Kuwait Petroleum Corp.” KNPC is a subsidiary of KPC.
He added that the project cost is estimated at KWD66mn ($218mn) and comes as the country is increasingly focusing on its domestic down- stream sector.
The headline plans focus on the intention to more than double re ning capacity from the 936,000 barrel per day rate it could achieve when the programme was conceived. e 200,000 bpd Shuaiba facility was closed in March 2017; nev- ertheless, downstream-focused KNPC aims to
reach 2mn bpd by 2035 under a $25bn plan. e 615,000 bpd integrated re nery and pet- rochemical facility being built at Al-Zour will be key to the rst phase of the expansion, taking
capacity to 1.7mn bpd by 2025.
KPC set up a new subsidiary, Kuwait Inte-
grated Petroleum Industries Co. (KIPIC), to carry out the development of the downstream and LNG import facilities in the southern port of Al-Zour, with the re nery to be commissioned in 2020.
e second phase will involve the construc- tion of a new re nery.
KNPC’s buaijan alluded to this growth drive, noting that the Matla storage project had come about because of the anticipated jump in prod- uct output. When complete, it will have a total capacity of 220mn litres.
buaijan also noted that KNPC will be build- ing 58 petrol stations over three phases that will be completed by 2024, adding that Pan Arab Consulting Engineers had been chosen to pro- vide consulting and engineering services or phases 1 and 2.™
pipelines
Singapore’s GIC joins ADNOC Oil Pipelines
middle east
Abu Dhabi National Oil Co. (ADNOC) announced this week that Singapore’s sovereign wealth fund GIC has acquired a 6% stake in the new ADNOC Oil Pipelines joint venture for $600mn.
The deal follows the finalisation in June of $4bn of investment from blackrock and KKR for a 40% share and $300mn from Abu Dhabi Retirement Pensions and bene ts Fund (ADRPbF) to acquire a 3% stake.
ADRPbF’s funds bought it a 3% stake from ADNOC’s customary 60% holding, which fell to 57% as a result and has now dropped to 51%. ADNOC said that the latter deal is anticipated reaching nancial close by the end of the year.
series and Global Infrastructure Investors fund respectively. However, ADNOC will retain sov- ereignty over the pipelines and management of pipeline operations.
ADNOC’s stake will be held by another new- ly-established entity called ADNOC Infrastruc- ture. is will also comprise Abu Dhabi Crude Oil Pipeline (ADCOP), the wholly-owned sub- sidiary owning and operating the parent rm’s crude oil pipeline from Abu Dhabi’s oil elds to the eastern port of Fujairah.
The deal is unique in being the first time global institutional investors have acquired interests in the midstream infrastructure of the region’s national oil companies. It also aligns with wider moves by ADNOC over the past two years to open up new parts of the business to foreign investment and to diversify funding sources.
A statement in June said that “ADNOC Oil
Pipelines leases ADNOC’s interest in 18 pipe-
lines, transporting stabilised crude oil and con-
densate across ADNOC’s o shore and onshore
upstreamconcessions,fora23-yearperiod.” epipelinesweresaidtocoveratotallength
It will receive a tari payable by ADNOC for “its share of volume of crude and condensate that ows through the pipelines, backed by min- imum volume commitments”.
blackRock and KKR invested through their Global Energy & Power Infrastructure Fund
of 750 km and have total aggregate capacity of 13mn bpd. ey carry crude and condensate to key processing facilities or for export from across the emirate’s onshore and o shore oil- elds, operated by ADNOC in JV with multiple IOCs.™
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