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Kuwait Clean Fuels Project reaches EPC bids stage

KNPC awarded PMC contract to Foster Wheeler

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolOn December 23rd, 2012, the state-owned oil refiner Kuwait National Petroleum Co (KNPC) selected Foster Wheeler for the project management consultancy (PMC) contract of the multi-billion Clean Fuels Project (CFP).

In Kuwait, the CFP project, as well as the New Refinery Project (NRP) were left on hold nearly four years between 2008 and 2012 because of the costs and internal discussions with the parliament.

In 2008, 37 reactors and vessels were ordered, as long lead items, that were delivered in 2012.

The both projects require from KNPC more than $33 billion capital expenditure.

With $18 billion capital expenditure for the CFP, KNPC intends to expand and up grade the existing Mina Al-Ahmadi and Mina Abdula refineries, while KNPC is planning in parallel to invest $15 billion to build from greenfield 4th refinery called NRP.

On first half 2012, KNPC re-activated the CFP project and closed in July 4th the dead line for the engineering companies to submit their expression of interest for the multiple engineering, procurement and construction (EPC) contracts to be awarded through calls for tenders on coming years.

KNPC_Mina_A-Ahmadi_Refinery_MapWith the CFP revamping and upgrading program, KNPC is willing to increase:

 – Refining capacities

 – Optimize the production of refined products between the two refineries Mina al Ahmadi and Mina Abdula

 – Add new fuel by-products in Kuwait portfolio

 – Reduce CO2 emissions and sulfur content in a higher performances transportation fuel

In that respect the KNPC CFP revamping and upgrade project will include to:

 – Build 30 new processing units in both Mina al-Ahmadi and and Mina Abdula refineries

 – Produce Euro IV gasoline meeting the requirements of maximum 10 parts per million (ppm) of low sulphur diesel (<1%)

 – Increase Mina al-Ahmadi and Mina Abdula refining output by 264,000 b/d to reach 800,000 b/d

 – Compensate refining capacities with the production of additional fuel by-products with high added value

With this scope of work, Foster Wheeler has been appointed to provide KNPC with PMC services.

KNPC to award first CFP EPC package on Q2 2013

The PMC contract had finally been signed on the base of $500 million, one of the world largest ever PMC contract.

According to the terms of the contract,  will support KNPC to organize the bidding process of the EPC packages and for the management of the EPC contracts when awarded to engineering companies and contractors for execution.

The first package of the CFP project to be awarded by KNPC should be the fluid catalytic converter and sweet water treatment unit of the Mina Al-Ahmadi refinery.

Estimated only to $200 capital expenditure, this small package has been split from the main EPC packages to simplify the overall execution of the revamping and upgrade program.

In 2012, KNPC invited engineering companies to submit their expression of interest (EOI) for this package.

Seven companies replied and were pre-qualified by KNPC in December 2012:

KNPC_Mina_Al_Ahmadi_Refinery – ABB from Switzerland

 – Daelim Industrial from South Korea

 – Hyundai Enngineering & Construction from South Korea

 – JGC from Japan

 – Larsen and Toubro from India

 – Petrofac from UK

 – Punj Lloyd from India

All these companies must return their technical and commercial offer by April 2nd 2013.

With the first EPC contract to be awarded on the second quarter 2013, KNPC expects with the support of Foster Wheeler to complete the Clean Fuels Project during the second quarter of 2018.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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