Italy’s Tecnimont has emerged as the front runner to win a deal to build an acid-gas removal facility at the Mina al-Ahmadi refinery after submitting the lowest price in a 18 May bid round, a source close to the project tells MEED.
Tecnimont’s price of $399m (KD116m) is lower than rival proposals from China’s Sinopec, the UK’s Petrofac, Italy’s Saipem, GS Engineering & Construction and Hyundai Engineering & Construction, both of South Korea.
Second placed Sinopec came in 15 per cent higher with a proposal of $471m.
Swiss-based ABB Engineering, SK Engineering & Construction, Daelim Industrial Company, both of South Korea, Japan’s Toyo Engineering and France’s Technip were all prequalified, but did not submit bids.
The winning firm will build a gas-handling unit and sweetening facilities at the refinery, which will strip sulphur from natural gas, as well as a sulphur recovery unit and associated infrastructure.
The facility will be capable of handling as much as 230 million cubic feet-a-day of gas and 78,000 barrels a day of condensates.
The project is part of Kuwait’s plan to reduce emissions by producing clean fuels. It includes plans for an overhaul of the country’s existing refineries and the construction of a fourth refinery at Al-Zour, the cost of which has risen to an estimated $15bn. The scheme has faced considerable political opposition, which has resulted in extensive delays.