Kuwait releases first tenders for New Refinery Project

03 June 2014

Prequalified consortiums have until late October to submit technical and commercial bids

Kuwait National Petroleum Company (KNPC) has released the tender for the first three packages at its planned $14bn New Refinery Project (NRP).

The tender was released to prequalified consortiums on 1 June and a pre-tender meeting will be held with all concerned parties on 25 June. The closing date for technical and commercial submissions is 26 October, but any queries relating to the tender need to be submitted before 13 August.

MEED reported in May that the prequalified consortiums are:

The packages are estimated to be worth about $9bn. KNPC has ruled that each consortium is capable of executing two of the three packages.

The first package’s scope is the main process units, including the crude distillation unit (CDU), atmospheric residue desulphurisation unit (ARD), hydrothermal upgrading units (HTUs) and the saturate gas plant, while the second covers the support process units and the third is for the project’s utilities and offsites.

The companies disqualified from bidding for the packages, which have been given the chance to submit complaints, are:

  • Habtoor Leighton Group (UAE/Australia) – packages 1, 2 and 3
  • STX Heavy Industries (South Korea) – packages 1, 2 and 3
  • Dong Ah Construction (South Korea) – package 3
  • Essar Projects (India) – package 3
  • Gulf Consolidated Contractors Company (Saudi Arabia) – package 3
  • Punj Lloyd (India) – package 3

Engineering, procurement and construction (EPC) contractors have had a long wait for the retender of the refining megaproject, which has been tendered twice before, only to be awarded and cancelled before construction could begin.

Two packages have already been released that will cover the construction of the tank farm and marine facilities. Bids for these are expected in September.

The new refinery is key to the country’s hopes of meeting growing power demand. The 615,000 barrel-a-day (b/d) facility will supply 225,000 b/d of low-sulphur fuel oil for power generation. The scheme will be one of the largest single-phase refineries ever built.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications