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KIPIC - Al Zour Refinery Expansion - Kuwait - Project Profile

Synopsis
"KIPIC - Al Zour Refinery Expansion - Kuwait - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.

The "KIPIC - Al Zour Refinery Expansion - Kuwait - Project Profile" is part of Timetric's database of 82,000+ construction projects. Our database includes a 10+ year archive of completed projects, full coverage of all global projects with a value greater than $25 million and key contact details for project managers, owners, consultants, contractors and bidders.

Summary
Kuwait Integrated Petroleum Industries Company (KIPIC) subsidiary of Kuwait Petroleum Corporation (KPC) is undertaking the construction of an oil refinery in Kuwait.

The project involves the construction of an oil refinery with a production capacity of 700,000-800,000 barrels per day (BPD) and the largest Liquefied Natural Gas (LNG) import facility. The project will be developed in five packages.

- The first package comprises Crude Distillation Units (CDU) 1, 11 and 21 of 205,000bpsd capacity, Atmospheric Residue Desulfurization (ARDS) Units 2, 12 and 22 of 110,000bpsd, Diesel Hydrotreating Units (DHTU) 3, 13 and 23 of 62,000bpsd capacity, Naphtha Hydrotreating Units (NHTU) 4, and 14 of 18,200bpsd, Kero Hydrotreating Units (KHTU) 5 and 25 of 53,000bpsd, Saturated Gas Unit (SGU) 34 and Heavy Oil Cooling (HOC) Unit 6.

- The second package includes Hydrogen Recovery Unit (HR) 34 of 55MMscfd capacity, Hydrogen Compression Unit 32, Hydrogen Production Unit (HPU) 33 of 4 X 145MMscfd capacity, Sour Water Stripper Unit (SWS) 35 of 3 X 450Cu.M/Hr, Amine Regeneration Unit (ARU) 39 of 3 X 1300Cu.M/Hr capacity, Sulfur Recovery Units (SRU) and Tail Gas Treating Unit (TGTU) 43 of 3 X 1000MT/Day capacity, Flare Unit 75, Sulfur Pelletizing/Conveying Unit 86, Acid Gas Flare Unit 92 and Sulfur Storage Area Unit 96.

- The third package consists of Steam Generation Unit 60, Air Systems Unit 61, Water Systems Unit 62, Cooling Water Unit 63, EICS & ICSS Units 70/71, HV SubStations Unit 73, Interconnecting Pipe rack Unit 74, Waste Water Treating Unit 76, Building Unit 78.

- The fourth package involves Storage Tankage/Piping/Underground Unit 67, Plant fuel Oil & Slop Tankage Unit 69 and Inter-refinery Pipelines Unit 84. It also includes the construction of a 450km pipeline system.

- The fifth package involves the construction of Marine Export Terminal with Solids Pier Unit 85, Sulfur Pelletizing / Conveying Unit 86, Subsea Outfall Lines Unit 88, Construction Dock Unit 90, Offshore (Sea Island) Unit 93 and Small Boat Harbor Unit 98.

- It also includes the construction of a Liquefied Natural Gas (LNG) import and Regasification facility comprising a regasification facility, eight LNG storage tanks and the civil works for coastal facilities in the refinery.

A consortium of JGC Corporation and GS Engineering and Construction Corporation has been awarded US$4,000 million contract to provide the facility's main manufacturing units. The task of equipping the refinery with subsidiary units has been awarded to SK Engineering and Construction Co., Ltd, which received US$2,000 million contract for this component of the project.

Daelim Construction Co., cancelledLtd. has been awarded US$1,200 million contract to provide tanks for the refinery, and Hyundai Engineering & Construction Co., Ltd for the related offshore facilities with US$1,100 million contract.

In March 2009, KNPC cancelled the letters of intent signed with contractors following allegations that the award of contracts lacked transparency.

However, in May 2011, KNPC received an in-principle approval from the Supreme Petroleum Council (SPC) to move ahead with the development works and in February 2012, SPC granted a final approval for the construction works on the long-delayed project.

On May 20, 2012, KNPC invited pre-qualifications for the engineering, procurement and construction (EPC) packages on a lump-sum turnkey basis with June 13, 2012, as the pre-qualification submission deadline. However, the submission deadline was extended to July 4, 2012.

In July 2012, U.S based Amec Foster Wheeler and Fluor Corporation, Australia's Worley Parsons, France's Technip and UK-based Amec Foster Wheeler Plc submitted bids for PMC contract.

In September 2012, Amec Foster Wheeler Plc was finalized for the project management consultancy service and the contract was awarded in December 2012. The contract value was US$528 million.

Rendel Ltd has been awarded a Project Management Consultancy (PMC) contract by AMEC for the provision of specialist marine consultancy services. The scope of work involves Pre EPC Contract award phase, EPC Contract Detailed Engineering and Procurement Phase, EPC Contract Construction, Commissioning and Handover Phase.

On December 23, 2012, KNPC invited pre-qualifications for the site preparatory works contract on a lump-sum turnkey basis with a submission deadline of May 2013.

On completion of site preparatory work, the site shall be ready for use by the refinery EPC main contractors. The scope of work under site preparatory includes sourcing of fill materials, excess materials handling/water disposal management, soil Remediation, and backfilling/earthworks.

In the second quarter of 2013, KNPC invited bids for EPC packages for the development of the project.

In May 2013, six companies submitted bids for the preparatory works contract. The companies include Boskalis Westminster of Netherlands; China Harbour Engineering Company from China; Netherlands-based Van Oord NV Dredging & Marine Contractors; Japan's Penta-Ocean Construction Company; Belgium's Dredging International; and Jan De Nul from Belgium.

On December 2, 2013, Boskalis Westminster was confirmed as the lowest bidder for site preparatory works.

On December 3, 2013, Honeywell International Inc. was appointed to provide Integrated Control and Safety System (ICSS) for the project. Honeywell International Inc. will also provide the front-end engineering design (FEED) service for the system.

On March 12, 2014, Van Oord NV was appointed to undertake offshore dredging work, backfilling and soil remediation, as well as leveling and reinforcing 16.2 million m2 site to prevent the invasion of seawater. The contract value is US$695 million.

In April 2014, KNPC pre-qualified six international consortia to bid for EPC packages on a lump-sum turnkey basis. The consortia include JGC Corp of Japan, Fluor Corporation and KPR of USA, Petrofac of UK, Saipem S.p.A. of Italy and TR Group of Spain.

The six consortia will bid for three major packages in the project.

In August 2014, the deadline for the fourth and fifth packages was extended from September 14, 2014 to November 9, 2014, due to political opposition.

In September 2014, KNPC agreed to extend a deadline for first, second and third packages until the end of 2014 or the first week of 2015 to give the companies and consortia a chance to meet requirements.

In October 2014, the deadline for the fourth and fifth packages was again extended to December 7, 2014.

On December 7, 2014, four bidders submitted bids for the fourth package. The bidders are Saipem S.p.A. and Essar Group (US$1,720 million); Daelim Construction Co., Ltd. (US$1,970 million); Daewoo Engineering & Construction Co.,(US$2,130 million); and Petrofac and HHI (US$2,350 million).

On December 24, 2014, the deadline for first, second and third packages was again extended to February 10, 2015. Later it was extended to March 8, 2015.

On January 6, 2015, bids for the marine package worth US$850 million were submitted by prequalified bidders. The pre-qualified bidders are Petrofac and Hyundai Heavy Industries Co., Ltd; Saipem, Essar Group and Hyundai Engineering & Construction Co., Ltd.; Daelim Construction Co., Ltd.; Daewoo Engineering & Construction Co., Ltd., and McDermott International.

In April 2015, KRPC submitted an application to re-tender package four and is waiting for approval from Kuwait's Central Tenders Committee (CTC).

A feasibility study for the proposed petrochemical facility is currently being carried out by KBC Advanced Technologies Plc.

In May 2015, KNPC canceled the tender previous tender for package IV and issued again with a submission by July 7, 2015.

In June 2015, the Kuwait Government approved US$2,600 million additional funds, which raised the project cost to US$15,500 million. 18 companies submitted bids for all the five packages.

On July 28, 2015, KNPC awarded US$4,217 million contract to a consortium of Spain's Tecnicas Reunidas, S.A, China's Sinopec and South Korea's Hanwha Engineering & Construction Corp. to build the main process units as part of the first package of the refinery.

The scope of work includes the construction of three crude distillation units, three atmospheric residue desulfurization units, three diesel hydrotreating units, two naphtha hydrotreating units, two kerosene hydrotreating units, a saturated gas unit and a heavy oil cooling unit.

A consortium of Daewoo Engineering and Construction, Hyundai Heavy Industries Co., Ltd and Fluor Corporation has been awarded US$5,733 million contracts to build support units and infrastructure services for a second and third package for the project.

KNPC awarded US$1,495 million contracts to a consortium of Hyundai Engineering & Construction Co., Ltd, SK Engineering & Construction Co., Ltd and Saipem S.p.A. for the fifth package.

On August 12, 2015, KNPC awarded US$1,575 million contracts to a consortium of Saipem S.p.A. (Italy) and Essar Group (India) for the construction of the fourth package. On October 26, 2015, all the contracts were signed for the construction of the project.

In February 2016, a new company called Kuwait Petrochemical Refining Company (KPRC) was established to implement the project.

On March 30, 2016, KNPC awarded US$2,930 million EPC contract for LNG import facility to Hyundai Engineering Co, Hyundai Engineering & Construction Co and Korea Gas Corporation. Hyundai Engineering & Construction will be in charge of the construction of the LNG tanks and the docking facilities, while Hyundai Engineering will build the regasification facility, and Kogas is responsible for commissioning and operation training for the project.

Mackley Construction was appointed as sub-contractor for design, supply, and construction of the barge dock combination wall.

In early 2016, construction commenced and in July 2016, construction of the barge dock combination wall completed.

In August 2017, Hyundai Engineering and Construction awarded US$26.5 million contracts to the Australian firm, SRG Limited (BBR Australia Pty Ltd.). The scope of the contract to provide post-tensioning works, which forms part of the construction of eight LNG tanks.

The ground improvement works completed.

In September 2017, Saipem was appointed as engineering, procurement, construction and commissioning contractor for construction of 450km pipelines of various diameter for the transportation of crude oil and gas.

In November 2017, Kuwait Petroleum Corp.'s (KPC) newly formed subsidiary Kuwait Integrated Petroleum Industries Co.(KIPIC) awarded a technology supply contract to Honeywell UOP LLC. The scope of the contract includes the supply of technology licenses, design services, key equipment, and proprietary catalysts and adsorbents for a selection of units designed to produce clean-burning fuels conforming to Euro 5 standards, paraxylene, propylene, and other petrochemicals.

The project received approval for the development of LNG terminal and pipeline.

Construction activities are underway.

Scope
The project involves the construction of an oil refinery with a capacity of 700,000-800,000bpd in Al Zour, Kuwait.

The US$16,000 million project includes the following:

1. Site Preparatory Works:

a. Sourcing of fill materials

b. Excess materials handling/water disposal management

c. Soil Remediation and backfilling/earthworks

2. Package I:

a. Construction of three Crude Distillation Units (CDU) 1, 11 and 21 of 205,000BPSD capacity

b. Construction of three Atmospheric Residue Desulfurization (ARDS) Units 2, 12 and 22 of 110,000BPSD

c. Construction of Diesel Hydrotreating Units (DHTU) 3, 13 and 23 of 62,000BPSD

d. Construction of Naphtha Hydrotreating Units (NHTU) 4, and 14 of 18,200BPSD

e. Construction of Kero Hydrotreating Units (KHTU) 5 and 25 of 53,000BPSD

f. Construction of Saturated Gas Unit (SGU) 34 and Heavy Oil Cooling (HOC) Unit 6

3. Package II:

a. Construction of Hydrogen Recovery Unit (HR) 34 of 55MMscfd capacity

b. Construction of Hydrogen Compression Unit 32

c. Construction of Hydrogen Production Unit (HPU) 33 of 4 X 145MMscfd

d. Construction of Sour Water Stripper Unit (SWS) 35 of 3 X 450Cu.M/Hr

e. Construction of Amine Regeneration Unit (ARU) 39 of 3 X 1,300Cu.M/Hr

f. Construction of Sulfur Recovery Units (SRU) & Tail Gas Treating Unit (TGTU) 43 of 3 X 1,000MT/Day

g. Construction of Flare Unit 75, Sulfur Pelletizing/Conveying Unit 86, Acid Gas Flare Unit 92 and Sulfur storage Area Unit 96

4. Package III:

a. Construction of Steam Generation Unit 60

b. Construction of Air Systems Unit 61

c. Construction of Water Systems Unit 62

d. Construction of Cooling Water Unit 63

e. Construction of EICS & ICSS Units 70/71, HV Substations Unit 73

f. Construction of Interconnecting Pipe rack Unit 74, Waste Water Treating Unit 76, Building Unit 78

5. Package IV:

a. Construction of Storage Tankage/Piping/Underground Unit 67

b. Construction of Plant fuel Oil & Slop Tankage Unit 69

c. Construction of Inter-refinery Pipelines Unit 84

d. Construction of a 450km pipeline system

6. Package V:

a. Construction of Solids Pier Unit 85

b. Construction of Sulfur Pelletizing / Conveying Unit 86

c. Construction of Subsea Outfall Lines Unit 88

d. Construction of Dock Unit 90

e. Construction of Offshore (Sea Island) Unit 93

f. Construction of Small Boat Harbor Unit 98

7. Liquefied Natural Gas (LNG) import and regasification facility:

a. Construction of regasification facility

b. Construction of civil works for coastal facilities

c. Construction of docking facilities

d. Installation of eight LNG storage tanks

Reasons To Buy
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- Identify key project contacts.

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KIPIC - Al Zour Refinery Expansion - Kuwait - Project Profile
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