Kuwait National Petroleum Company’s (KNPC) Clean Fuels Project (CFP) involves the upgrade and integration of the Mina Abdulla (MAB) and Mina Al Ahmadi (MAA) refineries.
The project will increase the combined capacity of the refineries from the existing 736,000 barrels per day to 800,000 barrels per day, and will lower the sulphur content of petroleum products to 5%.
MAB refinery is located 60km south of Kuwait City, while MAA refinery is located 45km south of Kuwait City.
Upgrade and integration of both refineries will be performed under three separate contract packages, including one at MAA and two at MAB. The project is scheduled for completion in mid-2018.
Certain facilities at the neighbouring Shouaiba refinery will also be renovated as part of the project, and they will be closed down with the opening of the new Al-Zour refinery in 2018.
Selected offsite facilities of the refinery, including storage, blending and shipping / logistics, will be integrated with the MAA / MAB operations.
Financing for the Clean Fuels project
The project will primarily supply 225,000 barrels a day of low sulphur fuel oil (LSFO) to local power plants.
The overall investment for the project is expected to reach KD4,680m (approximately $16bn). NBK Capital was appointed as the financial advisor to KNPC in September 2014.
Kuwait Clean Fuels project components
Modification and installation of 29 units will be performed at the MAA refinery. The existing fluid catalyst cracking (FCC) unit will also be refurbished.
New components at the refinery will include a vacuum distillation unit (VDU), delayed coker unit (DCU) and an atmospheric residue desulphurisation (ARDS) unit.
Other components include a sulphur recovery unit (SRU), gas oil desulphurisation (GOD) unit, and a hydrogen production (HPU) unit.
The first MAB package will involve the installation of 19 new refining units at MAB, the refurbishment of five existing units at the Shouaiba refinery site and installation of inter-refinery transfer lines.
The second MAB package will involve the renovation and new installation of 30 units in total.
The technology licensors for the project include Haldor Topsoe, Flour, UOP Honeywell, ABB Lumus, Chevron Lummus Global (CLG), Axens, Shell Global, and DuPont.
Contractors involved with the project
The project management services contractor is Foster Wheeler. A joint venture (JV) of Hill International (65%) and System Development and Project Management (35%) will provide consulting services for the project during construction phase.
Project management consultant during the front end engineering design (FEED) stage was Fluor. The preliminary design, specifications and bill of quantities (BOQ) for the refineries were prepared by Engineering Consultants Group (ECG) and the FCC at MAA will be upgraded by Daelim.
The $3.7bn engineering, procurement and construction (EPC) contract for the first MAB package was awarded to a JV comprised of Petrofac (46.9%), Samsung Engineering (42.9%) and CB&I Nederland (10.2%) in February 2014.
CB&I will supply two atmospheric residue desulphurisation units licensed by Chevron Lummus Global, a JV between CB&I and Chevron.
The $3.4bn EPC contract for the second MAB package was awarded to a JV of Hyundai Heavy Industries (HHI), Fluor Corporation and Daewoo Engineering & Construction in April 2014.
EPC contract for MAA package was awarded to the JV comprised of JGC Corporation, GS Engineering & Construction (GS E&C) and SK Engineering & Construction (SK E&C).
SK E&C will construct the DCU and SRU, while GS E&C will construct the GOD unit and HPU.
High-voltage substations for both refineries will be supplied by Siemens under a contract worth €179.4m ($225m). The reactors, separators and coke drums were manufactured by Larsen & Toubro (L&T) and shipped to the project site by Jumbo.