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Al-Zour terminal set for 1Q22 completion

PROJECTS & KUWAIT’S Al-Zour regasification terminal is commissioning in November, with a 2.8mn tpy
COMPANIES expected to be completed by the end of Q1 next petrochemical facility expected to follow with a
year as the country makes a major shift towards provisional date set for 2024.
increased gas utilisation for both residential and The petchem slate will comprise 1.4mn tpy of
industrial consumers. paraxylene (PX), 940,000 tpy of polypropylene
Speaking to local media, Salman Al-Ma- (PP) and 420,000 tpy of gasoline.
zeedi, project co-ordinator for Kuwait Integrated KIPIC, a subsidiary of state-owned Kuwait
Petroleum Industries Co. (KIPIC), said: “The Petroleum Corp. (KPC), was set up to over-
project is progressing smoothly and will be fully see the development of Al-Zour, with Greece’s
operational in March 2022.” Hellenic Gas Transmission System Operator
The completion of the LNG Import termi- (DESFA) last year awarded a contract to operate Imports of LNG
nal (LNGI) had been anticipated in early 2021 the facility for at least five years.
but was one of many Kuwaiti projects delayed The Kuwaiti company had set a target com- are seen playing
by logistical issues relating to the coronavirus missioning date of late 2020 for the refinery but
(COVID-19) pandemic. this was pushed back to Q1 2021 as restrictions a major role in
LNGI is under development by a consor- relating to COVID-19 slowed progress.
tium comprised of South Korean firms Hyundai Several services firms and contractors Kuwait’s intention
Engineering & Construction Co. and Korea Gas involved in the development of Al-Zour were to increase the
Corp. (KOGAS) that won a $2.9bn contract for reported to have attempted to invoke force
the project in 2016. majeure, with restrictions having made it impos- use of cleaner
Having agreed a deal in January 2020 for sible to meet deadlines, while Kuwait recently
Qatar Petroleum (QP) to provide up to 3mn re-introduced measures to halt the spread of fuels.
tpy of LNG for a period of 15 years beginning in COVID-19 and restricted travel into the country
2022, KPC went to the market to acquire a cargo in early February.
delivered ex-ship (DES) with which to commis- Test runs are understood to be ongoing,
sion LNGI. while oil feedstock began flowing to the refinery
LNGI is home to eight storage tanks with a through a dedicated pipeline on December 1.
capacity of 225,000 cubic metres and a regasifica- Imports of LNG are seen playing a major
tion facility capable of processing 22mn tonnes role in Kuwait’s intention to increase the use of
per year (3bn cubic metres per day) of LNG. It cleaner fuels, with the same aim aided by the
forms part of a massive new downstream hub recent completion of its $15.7bn Clean Fuels
at Al-Zour. The $16.1bn complex will be home Project which covered the overhaul and expan-
to a 615,000 bpd refinery which is due for sion of its two key existing oil refineries.™

P10 www. NEWSBASE .com Week 34 27•August•2021