Fourth refinery project goes for bid

03 May 2006

Kuwait National Petroleum Company (KNPC) has issued for bid the four main engineering, procurement and construction (EPC) packages on its planned 615,000-barrel-a-day (b/d) refinery at Al-Zour in the south (MEED 14:4:06).

They are:Package 1, estimated to be worth $2,000 million-2,400 million, involves the installation of three 205,000-b/d crude distillation units (CDUs) and diesel, naphtha and kerosene hydrotreaters. Five companies have been prequalified to submit bids by 3 September;Package 2, estimated to be worth $1,000 million, covers the installation of hydrogen production, gas treatment, and amine treatment units. Seven EPC contractor groups have been prequalified to submit bids by 27 August;Package 3, worth $900 million, calls for the construction of offsites and utilities (O&U), covering infrastructure, control systems and auxiliary unit work. Six groups have been invited to submit bids by 3 September; andPackage 4, worth $500 million, entails the construction of a tank farm and marine export facilities. Five groups are prequalified to submit bids by 27 August.

Pre-tender meetings are due to be held on 19-29 June for all four packages in Houston.

Scheduled to come on stream in 2010, the refinery will be the largest in the region. It is aimed primarily at providing fuel oil for the state's power plants, but has been configured to switch to refine export crude. The Houston office of the US' Fluor Corporation is the front-end engineering and design (FEED) and project management contractor.

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