Page 7 - DMEA Week 17 2022

DMEA REFINING DMEA

Confusion surrounds Al-Zour launch

MIDDLE EAST KUWAIT’S Integrated Petroleum Industries Co. re-introduced measures to halt the spread of
(KIPIC) this week moved to deny reports about COVID-19 and restricted travel into the country
delays in the commissioning of its greenfield in early February.
Al-Zour refinery in the south of the country. Reports in January said that commissioning
The company said that the first units at the of the facility’s hydrogen unit had been com-
615,000 barrel per day (bpd) facility “will be pleted with a 49,000 tonne cargo of naphtha
completed within the next few weeks, God will- delivered for use in commissioning.
ing,” following reports by MEED that the launch Once complete, Al-Zour will take Kuwait’s
of the refinery had been stopped with amend- throughput capacity to 1.415mn bpd following
ments pending a decision by the Supreme Petro- the recent completion of the long-awaited Clean
leum Council (SPC). Fuels Project (CFP), while the country has previ-
Despite mechanical completion having been ously spoken of plans to reach 2mn bpd.
reached last year, MEED quoted ‘informed Al-Zour is home to a new regasification ter-
sources’ who suggested that the April 5 resig- minal, LNG Import (LNGI), which has a capac-
nation of the Kuwaiti government was likely to ity of 22mn tonnes per year (tpy). LNGI has eight
cause significant delays in the refinery’s com- storage tanks with a capacity of 225,000 cubic
missioning. One source said: “The Supreme metres and a regasification facility capable of
Petroleum Council must take decisions regard- processing 3 bcm per day of gas.
ing possible changes in the scope of the project’s The facility received its first shipment of LNG
work […] the project is now suspended, and no from QatarEnergy last year and will receive fur-
further operation will be done until these deci- ther cargoes under a 15-year, 3mn tpy supply
sions are completed.” deal that began in January.
Another added: “There is a great deal of
uncertainty about the future of the project.” Petchem tenders
KIPIC, a subsidiary of state oil firm Kuwait Meanwhile, local media reported this week that
Petroleum Corp. (KPC), which was set up to another KPC subsidiary, the Petrochemicals
oversee the $16bn project’s implementation and Industries Co. (PIC), would soon issue tenders
to manage and operate the integrated refining, for various projects, including a new chemicals
petrochemicals and LNG import facilities, said facility.
the reports were “untrue”. The Arabic language Alanba daily said that
It had set a target commissioning date of late PIC plans to issue 31 tenders between April and
2020, pushing this back to 2021 – then 2022 – as September covering consultancy services, equip-
restrictions relating to coronavirus (COVID-19) ment supply and other services, including a fea-
slowed progress. Several services firms and con- sibility study for the planned facility.
tractors involved in the development of Al-Zour “Another key tender during that period is for
were reported to have attempted to invoke force the naming of a consultant to carry out a tech-
majeure with restrictions having made it impos- nical study for a new investment opportunity in
sible to meet deadlines, while Kuwait recently Kuwait,” it said.™

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