• The Al-Zour New Refinery Project is seeing delays after bids came in $3.7bn over budget
  • Extra facilities may have to be added to the scope of the gas import terminal due to the Al-Zour delays
  • Bids are due to be submitted for the gas terminal project on 29 September

Delays to the Al-Zour New Refinery Project (NRP) may complicate plans for the liquefied natural gas (LNG) import terminal (LNGI), which is due to be built nearby, according to a source with knowledge of both projects.

Under the original plans for the gas terminal, it will make use of facilities that will be built as part of the marine package of the NRP, but delays mean that these may not be in place in time, according to the source.

State-owned downstream operator Kuwait National Petroleum Company (KNPC) is currently seeking approval for an increased budget for the Al-Zour New Refinery Project after bids came in $3.7bn over budget.

The process has already caused significant delays and the timetable for the refinery’s construction is uncertain.

If the Al-Zour marine package, known as package five, does not see movement over coming months a number of facilities that were due to be built as part of the NRP may have to be constructed as part of LNG terminal project.

“If LNGI goes ahead before the refinery, then LNGI would have to tell bidders of the change of scope before the end of August to meet the closing date,” says the source.

Parts of the project that may be transferred from package five to package four could include the construction of a harbour for small boats, according to the source.

The $3.3bn gas terminal project has seen significant progress over recent months.

Bids are due to be submitted for the project on 29 September.

A total of 13 companies and consortiums that prequalified to bid on the project:

The qualified bidders are:

According to KNPC plans, the LNG regasification terminal will have a capacity of 1,500 billion BTUs a day and will include two berths for the simultaneous unloading of large LNG carriers.

The terminal will also include four full containment LNG tanks, each with a working capacity of 225,500 cubic metres.

It is due to be constructed on reclaimed land formed by hydraulic filling.

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