State-owned downstream oil operator Kuwait National Petroleum Company (KNPC) is preparing to tender the engineering, procurement and construction (EPC) contract for the Local Marketing Depot at Matlaa.

“The problems that were delaying the project’s approval have now been solved,” said one source.

Front end engineering design (Feed) work for the project was completed in the 2015 – and it was originally expected that the invitation to bid (ITB) for the EPC contract would be issued be issued in the first quarter of 2016.

Since then, the project has suffered from significant delays and the ITB is yet to be issued.Kuwait National Petroleum Company (KNPC) is developing the Matlaa fuel depot project to meet the growing demand for petroleum products in the local market as well as cutting transportation costs and maintaining strategic stocks in depots as per KPC recommendations.

The Matlaa depot will be Kuwait’s third fuel depot and will serve the north of of the country where increased demand is expected due to large housing developments.

Its scope includes cross-country pipelines, new pumping facilities and a storage tanks.Oil will be pumped to the depot by pipeline before being distributed to petrol stations by fuel tankers.