Kuwait extends downstream project bid deadline

9 October 2023

State-owned Kuwait Integrated Petroleum Industries Company (Kipic) has extended the bid submission deadline for a contract for a project to develop an alternative feed for the hydrogen production unit at its $16bn Al-Zour refinery.

The bid deadline has been changed from 24 September to 19 November, according to information released by Kuwait’s Central Agency for Public Tenders (Capt). Originally, the bid deadline was 20 June.

The contract scope includes engineering, procurement and construction (EPC) work, as well as work covering pre-commissioning, start-up and quality testing.

In September last year, MEED reported that Kipic had contacted the following contractors, among others, soliciting their interest regarding the planned project:

  • Hyundai Engineering & Construction (South Korea)
  • Larsen & Toubro Energy Hydrocarbon (India)
  • Petrofac (UK)
  • Samsung Engineering (South Korea)
  • SK Engineering & Contracting (South Korea)

The project has an estimated budget of $150m and is expected to take 36 months to complete.

The scope of the EPC work on the project includes:

  • Construction of unit 38 (compression facilities), including piping tie-ins and connections to process and utility headers within the existing interconnecting pipe racks (unit 74)
  • Modifications and associated tie-ins for unit 33, the existing hydrogen production unit
  • Construction of unit 60, a steam generation unit
  • Construction of two new boilers and modifications to extend the existing steam generation unit, including all associated tie-ins
  • Construction of associated facilities

Last month, MEED reported that Kipic was conducting tests to evaluate the performance of the third crude distillation unit (CDU) at the Al-Zour refinery.

The third and final CDU was brought online in July this year, but the refinery is still not running at its nameplate capacity.

It is believed that if the results of the tests are favourable it will be possible to rapidly ramp up production volumes at the refinery so that they hit the nameplate capacity over coming months.

In September, Kipic’s executive vice-president for administrative and commercial affairs, Abdullah Fahad al-Ajmi, said the facility was processing 410,000 barrels a day (b/d).

At the time, he said Kipic would continue to push towards reaching the full refining capacity of 615,000 b/d.

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Wil Crisp
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