December 5, 2008 at 12:21 pm #3286
Kuwait may cancel new refinery project – paper
KUWAIT, Dec 5, 2008 – Kuwait may scrap a project to build the country’s fourth refinery with a capacity of 615,000 barrels per day, which has faced opposition in parliament, a newspaper said on Friday, citing an unnamed government source.
“A government figure revealed … what he called a government plan to cancel the fourth refinery project and replace it with another which includes a revamping of the Shuaiba and al-Ahmadi refineries,” the daily al-Seyassah said.
Officials from the government or state refiner Kuwait National Petroleum Co. could not be reached for comment on Friday when offices are closed for the Muslim weekend.
The unnamed source said the decision may be taken “especially after the audit bureau confirmed that the new refinery was not feasible from the economic and technical points of view,” the newspaper said without elaborating.
KNPC has awarded contracts worth $8.4 billion on the project, including a package worth $4 billion to Japan’s JGC Corp and South Korea’s GS Engineering and Construction Corp.
But final contracts to build the Al-Zour refinery, valued at about $15 billion, have yet to be signed as the state audit bureau has launched a probe into whether the tender process showed irregularities.
Some deputies have alleged that there were violations, particularly in handing out a package to U.S. engineering firm Fluor without a tender.
Kuwait plans to boost refining capacity to 1.415 million bpd from around 930,000 bpd with the new plant and upgrades to two other refineries.
December 5, 2008 at 12:26 pm #6414
Here is Update on KNPC Grassroots Refinery (forgot to login so shows as guest).
This looks like KNPC feel its re-negotiating time (and still ticked about the Fluor bids). This new refinery is expected to also have a coker similar to the other expansion/addition on existing refineries (except for the one being shutdown).
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