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July 10, 2020updated 22 Oct 2021 6:24am

Kuwait says Clean Fuels Project is a key focus

By MEED   

State-owned downstream operator Kuwait National Petroleum Company (KNPC) has said that completion of its $12bn Clean Fuels Project will be a key focus for the company as the country emerges from lockdown.

In his first major speech since Kuwait introduced strict restrictions designed to combat the spread of Covid-19, KNPC chief executive Walid al-Badr said that the company’s most important work was the completion of the two clean fuels projects at the Mina Abdullah refinery.

In March 2019, Kuwait’s Supreme Council for Planning & Development said the Clean Fuels Project would be finished before the start of 2020, but the project has been hit by a series of delays.

The three main packages were awarded during 2014.

The packages were awarded to the following companies:

  • Mina Abdullah ($3.7bn Package 1): Petrofac / Samsung Engineering / Chicago Bridge & Iron
  • Mina Abdullah ($3.4bn Package 2): Fluor Corporation (US) / Hyundai Heavy Industries (South Korea) / Daewoo E&C (South Korea)
  • Mina al-Ahmadi ($4.7bn Package 3): JGC Corporation (Japan) / GS Engineering & Construction (South Korea) / SK Engineering & Construction (South Korea)

Earlier this year, KNPC announced that construction work for Package 3, located at Mina al-Ahmadi, had been completed.

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Packages 1 and 2 have a combined value of $8.1bn and still require significant work to be done before completion is achieved.

The Clean Fuels Project was first announced in Kuwait in 2007. KNPC awarded technology contracts for the scheme to several international firms, including US engineering and technical services company Chevron Lummus, in February 2008.

Orders for 37 reactors and vessels were placed, but the project stalled in 2009.

Kuwait’s Supreme Petroleum Council reviewed the project in 2010 and the plans were finally approved in June 2011.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here

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