Kuwait tenders two refinery contracts

19 July 2023

State-owned downstream operator Kuwait National Petroleum Company (KNPC) has tendered two strategic contracts focused on its Mina al-Ahmadi (MAA) refinery.

One of the contracts is for a project to inspect six submarine pipelines at the facility using high-resolution ultrasonic intelligent pigging technology.

Ultrasonic pigging uses ultrasound sensors to detect and measure corrosion, metal loss, cracks, dents, and deformations.

A pre-tender meeting for the contract is due to take place on 3 August and the deadline for bid submission is 19 October.

Desulphurisation unit

The second contract is for consultancy services for front-end engineering and design (feed) works for a fuel gas desulphurisation unit (FGDU) at the MAA refinery.

FGDUs remove sulphur dioxide from exhaust flue gases of industrial facilities such as oil refineries.

Fossil fuels such as coal and oil can contain a significant amount of sulphur. When fossil fuels are burned, about 95 per cent or more of the sulphur is generally converted to sulphur dioxide.

The pre-tender meeting for the contract is due to take place on 2 August and the closing date is 19 October.

Ten companies have prequalified to bid on this contract. They are:

  • Wood Group (UK)
  • Engineers India Limited (India)
  • Toyo Engineering Corporation (Japan)
  • ILF Consulting Engineers (Austria)
  • Asprofos (Greece)
  • Gulf Spic General Trading & Contracting (Kuwait)
  • Larsen & Toubro (India)
  • Triune Energy Services (India)
  • Worley Engineering (Australia)

Kuwait has had three elections in three years, creating policy uncertainty that has significantly impacted businesses and delayed major decisions on projects.

The country has seen a contraction in the value of its oil and gas projects market as the political deadlock has blocked approvals for major infrastructure projects.

Between the start of 2020 and the beginning of May this year, Kuwait’s total value of all active oil, gas and chemicals projects declined by 65 per cent, from $67.1bn to just $23.5bn.

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Wil Crisp
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