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KNPC awards US$1.3bn contract for Al-Zour new refinery project

The Kuwait National Petroleum Corporation (KNPC) has awarded Saipem a US$1.3bn contract for the Al-Zour New Refinery Project (NRP), located 90 km south of Kuwait City. The Al-Zour NRP, which will have a refining output capacity of 615,000 bbl/d, has the strategic goal of supplying both Kuwaiti and global demand for ultra low-sulphur petroleum products. Part of the production will support Kuwait’s Ministry of Electricity & Water for its LSFO demand.

The NRP has been divided into five major EPC packages. Package 4 consists of an EPC contract for the tankages, related road works, buildings, pipe racks, pipelines, water systems and control systems for the Al-Zour refinery. The Package 5 consists of an EPC contract for the offshore maritime export facilities for the Al-Zour NRP. Both packages will be completed in 2019. Saipem will carry out work in partnership with Essar Projects Limited for Package 4 and with Hyundai Engineering & Construction and SK Engineering & Construction for Package 5.