Kuwait approves ABB pipeline proposal

26 April 2010

The $167m award involves construction of a cross-country crude oil pipeline

Kuwait’s Central Tenders Committee (CTC) has approved a $167m proposal from Switzerland-based ABB Engineering Technologies Company to build a cross-country crude oil pipeline.

The CTC met on 19 April to discuss ABB’s price of KD48.35m, which beat proposals from as many as 25 international contractors. Submitted on 31 January, the proposal was some $14m lower than its nearest competitor. An award is now expected by the end of June (MEED 7:2:10).  

The client, state-owned Kuwait Oil Company (KOC) issued the tender on 1 November last year.

ABB will build a 30-inch cross-country crude oil transit line (TL-4) from KOC’s crude oil gathering centres in northern Kuwait, approximately 120 kilometres to a new central mixing manifold at Ahmadi. A smaller pipeline, with a diameter of 16 inches will run 60km from the existing TL-3 pipeline to the Subiya power station.

The proposed new pipeline will provide a back-up crude oil supply in the event that the earlier TL-3 is unavailable. The pipeline will include a leak detection system and metering station, along with associated instrumentation and electrical works.

Kuwait has an estimated 13 billion barrels of heavy crude oil reserves, located primarily in the north of the country.

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