Kuwait Signs $13bn Refinery Contracts, Pledges Continued Oil Investment

As KNPC signs contracts for the long-delayed Al-Zour refinery, Oil Minister ‘Ali al-‘Umair says spending on petroleum sector projects will not slow despite oil prices.

State refiner Kuwait National Petroleum Company (KNPC) has signed engineering, procurement and construction (EPC) contracts worth a combined KD3.95bn ($13.1bn) for construction of the 615,000 b/d Al-Zour refinery, first mooted many years ago but repeatedly delayed by political wrangling.

KNPC chief executive Muhammad al-Mutairi told reporters on 12 October that commissioning of the refinery is expected to begin in November 2019. The new refinery will eventually be part of a complex including a large petrochemicals project and an LNG import facility, he adds. Mr Mutairi says that the new refinery will provide fuel oil with less than 1% sulfur for burning in Kuwait’s power plants. This compares with 4% from Kuwait’s existing refineries. The refinery will also produce transport fuels to European specifications, opening up new markets for products exports. (CONTINUED - 758 WORDS)

DATA INSIDE THIS ARTICLE

table Kuwait Refining Capacity ('000 B/D)