Kuwait’s Al-Zour integrated refining complex progressing as planned

Kuwait Petroleum Corp.’s (KPC) newly formed subsidiary Kuwait Integrated Petroleum Industries Co. (KIPIC) said it remains on schedule to complete its grassroots 615,000-b/d Al-Zour integrated refining complex under construction in southern Kuwait by yearend 2019.

Refuting recent local media reports that the project will be delayed, KIPIC confirmed on Jan. 20 that all five packages of the integrated complex are proceeding in line with the original schedule, with all packages due to be completed by the end of 2019.

With the project currently 45% completed, initial refining units are on track to enter operation in May 2019, as originally planned, according to KPC Chief Executive Nizar Al-Adsani and KIPIC Chief Executive Hashem Sayed Hashem.

The cornerstone of Kuwait’s Clean Fuels Project to upgrade its refineries to produce clean-burning fuels conforming to Euro 5 standards, the Al-Zour refinery comes as part of KPC’s broader downstream program under its 2030 strategy to enhance growth in its refining and manufacturing sectors, which also includes the upgrade, expansion, and transformation of the 270,000-b/d Mina Abdullah and 466,000-b/d Mina Al Ahmadi refineries into an integrated 800,000 b/d merchant refining complex (OGJ Online, Nov. 28, 2017).

As part of the downstream initiative, KPC subsidiary Kuwait National Petroleum Co. also shuttered its aging 200,000-b/d Shuaiba refinery on Apr. 1, 2017 (OGJ Online, July 31, 2017).

KPC formed KIPIC in late 2016 to manage refinery, petrochemicals, and LNG import operations in the Al-Zour complex. Also charged with securing Kuwait’s local demand for energy and contributing to growth of the private sector, KIPIC is Kuwait’s first integrated downstream company as well as the KPC arm responsible for achieving integration between the refining and petrochemical industries.

Contact Robert Brelsford at [email protected].