KNPC CEO makes announcement following official launch of project
The cost of liquefied natural gas (LNG) importing facilities at the Al-Zour refinery will total up to $2.9bn, according to Kuwaiti news agency Kuna.
Kuwait National Petroleum Company (KNPC) CEO Mohammad al-Mutairi, speaking at a news conference following the signing of a contract signifying the launch of the project, stated the overall cost is projected to be $142m for engineering, $965m for imports and $1.67bn for construction.
Al-Mutairi said the project encompasses building wide-scale installations for importing 3,000 BTUs a day of LNG to meet mounting domestic demand.
Once commissioned, the scheme will help reduce the use of oil and fuel oil for power generation, as well as reduce environmental contamination.
Kuna reported that the facility, part of the Al-Zour New Refinery Project (NRP), is forecast to be fully operational by the first quarter of 2019.
Earlier this week, MEED reported that KNPC was weighing options to develop petrochemicals facilities at the $13bn NRP, in addition to the LNG terminal, with the cost for the entire complex potentially amounting to about $25bn.
Kuwait considers three options for Al-Zour chemicals plant
- Most probable scenario is that KNPC will build both olefins facility and aromatics plant
- Integration with Al-Zour New Refinery Project will help improve profit margins
- New company has been created to manage petrochemicals facility
State-owned downstream operator Kuwait National Petroleum Company (KNPC) is considering three options for the planned petrochemicals facility at its Al-Zour New Refinery Project (NRP), according to industry sources.
The first option is the integration of an olefins plant, the second is the integration of an aromatics facility and the third is the construction of both.
The most probable scenario is that KNPC will build both an olefins facility and an aromatics plant, and integrate them with the NRP, says one source.
Kuwait revived plans for a multibillion-dollar petrochemicals project located in the Al-Zour area in September 2014, and announced plans to set up a new company to manage the scheme in February this year.
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