DOWNSTREAM: Back on track

23 January 1998
SPECIAL REPORT OIL & GAS

IN the downstream sector, Kuwait's Mina Abdullah, Mina al-Ahmadi and Shuaiba refineries are processing a total of 910,000 barrels a day (b/d), the highest level since August 1990. Post-war reconstruction is virtually over - only work on a new hydrocracker at Shuaiba still awaits completion.

Kuwait National Petroleum Corporation (KNPC), which manages the refineries, is now working on a long-term strategy for the downstream industry. A study is expected to be completed by the end of the year.

Kuwait Petroleum Corporation (KPC), the umbrella company for the Kuwaiti oil industry, has virtually completed a product and marketing study for Kuwaiti refined products. This will enable KNPC to devise a new product slate and work schedule. KNPC expects greater demand for lighter and more environmentally friendly refined products. 'European law calls for the reduction in the sulphur content in diesel,' says one KNPC official.

One project slated for this year is a new gas oil desulphurisation plant at the Mina al-Ahmadi refinery. The UK-based Parsons Group International was awarded the consultancy last year and contractors are now being prequalified for the $125 million project.

KNPC is also working hard to upgrade the export facilities at two of its refineries. China Harbour Engineering Company is upgrading facilities at Shuaiba under a $61.2 million contract awarded in 1996.

At Mina al-Ahmadi, the UK's Mouchel & Partners was awarded the front end engineering and design (FEED) contract for a new pier last summer. The new structure will replace the south pier and will be about two kilometres long with four-six berths.

The new pier is not expected to be completed for at least four years, so KNPC is renovating the existing south pier to ensure it lasts until the new one is in place. It is also making long-term repairs to the north pier to keep it operational for another 15 years. The Netherlands' Frederic R Harris is completing detailed designs for the renovation of both piers.

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