Al-Zour LNG Import Terminal Project, Kuwait

The operations on the Al-Zour LNG terminal will begin in 2020. Credit: ArcelorMittal Europe.

The Al-Zour terminal is expected to produce 22 million metric tonnes (MMT) of natural gas a year. Credit: ArcelorMittal Europe.

The Al-Zour LNG terminal is located in the Al-Zour region in Kuwait. Credit: ArcelorMittal Europe.

The Kuwait National Petroleum Company (KNPC), a subsidiary of Kuwait Petroleum Corporation, is building a new liquefied natural gas (LNG) import terminal at Al-Zour in Kuwait.

The project includes the construction of a re-gasification facility, storage tanks and marine facilities.

It is estimated that the Al-Zour LNG import terminal project will attract an investment of $3bn. Construction on the project started in 2016 and is scheduled for completion by 2020. The terminal will start receiving LNG deliveries from 2022 under a 15-year agreement between Qatar Petroleum and Kuwait Petroleum Corporation (KPC). Pursuant to the agreement, Qatar will supply up to three million tonnes per annum (Mtpa) of LNG to Kuwait.

The project completed power energising in August 2019. This involved supplying 132 kilovolts (kV) of power from Al-Khiran and Al-Zhour power substations to the main intake substation (MIS) of the Al-Zour LNG site and then supplying 33kV power from the MIS to the manufacturing execution systems (MES).

Al-Zour LNG import terminal location

Al-Zour LNG terminal is located in the Al-Zour region, approximately 90km south of Kuwait’s capital, Kuwait City, near the border with Saudi Arabia.

The conceptual and feasibility studies to select the suitable technology and location for the Al-Zour LNG import terminal were conducted by Foster Wheeler, along with a local partner, in 2014.

Al-Zour LNG import terminal project details

The project includes the construction of a re-gasification facility, eight LNG storage tanks with a capacity of 225,000m³ each and marine facilities, including two marine jetties and berthing facilities for loading. The project will also include other components, such as 14 high-pressure (HP) pumps, boil-off gas (BOG) and flare facilities.

The Kuwait National Petroleum Company (KNPC) selected a consortium led by Hyundai Engineering Company (HEC) for the construction of Al-Zour LNG project. The consortium also includes Hyundai Engineering & Construction (E&C) and state-owned Korea Gas Corporation (KOGAS).

Once fully operational, the facility is expected to produce approximately 22 million metric tonnes (MMt) of natural gas a year and will have a storage capacity of 1.8 million cubic metres of LNG. The liquefaction capacity of the terminal will be 30 billion cubic metres per day.

Contractors involved

HEC was awarded a $1.39bn contract for the construction of the re-gasification plant. Hyundai E&C was responsible for providing the design and construction of the LNG storage tanks and performing civil works for the construction of marine facilities, under a $1.52bn contract.

The Global Engineering and Construction Group, part of Foster Wheeler, was awarded a contract by KNPC to provide front-end engineering design (FEED) services for its new onshore LNG import terminal.

A contract to supply Krybar, a concrete supporting steel bar that provides safety for cryogenic applications, was jointly awarded to ArcelorMittal Special Rebars & Thread Bars and ArcelorMittal Projects.

3W Networks won a contract to provide telecommunication and security systems for the project in March 2018.

The contractual scope includes design, integration and installation of hotline telephones, local area network (LAN) / wide area network (WAN), closed-circuit television (CCTV), intruder detection, an access control system and a command control security management system.

Benefits of the LNG import terminal

The project is expected to have a number of economic benefits for the local community, including creating job opportunities, and will improve the housing, shipping and transpot economies, among others.

LNG supplies from the facility will feed power plants across Kuwait, enabling them to generate enough power to meet electricity demands during peak times.

Opportunities will also be created by the project for local private and public companies to accelerate industry growth throughout the region.