The contract to construct a fifth gas fractionation train at Kuwaits Mina al-Ahmadi refinery will be signed within the next two months, according to Hatem al-Awadi, the deputy CEO for projects at state-owned downstream operator Kuwait National Petroleum Corporation (KNPC).
Al-Awadi made the statement to Kuwaits state-controlled news agency Kuna on the sidelines of a risk management conference.
Spains Tecnicas Reunidas is low bidder on the contract with a price of KD433.7m ($1.45bn).
Tecnicas Reunidas price came in higher than the Kuwait Central Tender Committee (CTC) budget estimate, which was KD363.9m.
The full bidder list is:
- Tecnicas Reunidas, KD433.7m ($1.45bn)
- Daelim Industrial, KD440.4m
- Petrofac, KD494.8m
- GS E&C, KD532.2m
Though the low bid has come in over budget the project isnt expected to see the same complications as the Al-Zour New Refinery Project.
Were expecting the fifth gas trains contract award process to be much more straightforward, one source close to the tendering process said.
The new gas train will increase Kuwaits production capacity to 805 million cubic feet of gas a day (cf/d) and 106,000 barrels a day (b/d) of condensate.
Gas processed by the facility will include associated gas from the states northern and south-eastern oil fields including the early production facilities (EPF) projects.
It will also include gas from KNPCs acid gas removal plant at Mina al-Ahmadi.