Backgroud
Kuwait National Petroleum Company’s Clean Fuels Project (CFP) involves the upgrade and integration of the Mina Abdulla (MAB) and Mina Al Ahmadi (MAA) refineries.The Clean Fuels Project (CFP) is ambitious plan to overhaul Kuwait’s refining sector. once completed, these project will not only represent one of the largest undertakings in Kuwait’s history, but they will also reshape its refining sector.
The $16 billion CFP is designed to upgrade and integrate the Mina Abdulla and Mina Al Ahmadi refineries. The 200-Mbpd Shuaiba complex will be shut down, as a revamp of the facility was deemed uneconomical. The Mina Al Ahmadi refinery’s capacity will decrease to 346 Mbpd, and Mina Abdullah’s throughput will increase to 454 Mbpd. The newly integrated refineries will act as a single merchant refining complex, boosting domestic capacity from 736 Mbpd to 800 Mbpd. With the addition of the Al-Zour refinery, domestic refining capacity will reach 1.4 Mmbpd by 2018.
The CFP objectives include meeting year 2020 market demand and specifications for low-sulphur transport fuels, concentrating refining capacities at Mina Abdullah and Mina Al Ahmadi, improving the operating performances and energy efficiencies of the refineries, reducing carbon dioxide emissions, optimising KNPC hydrocarbon products output between the refineries and closing the Shuaiba refinery, and potentially integrate some offsite facilities (storage, blending and shipping/logistics facilities) with Mina Abdullah and Mina Al Ahmadi operations.
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.
Brief Introduction
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.
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.
Current rights and interests
Kuwait National Petroleum Company (KNPC): Operator with 100% interest
Company behavior
Contractors
Al-Meer Technical Services Co. (ALMEER): Instrumentation systems
AMEC: Management services including feasibility studies, EPC, FEED and PMC services
Axens: Technology for the fluid catalytic coverter (FCC)
CB&I: EPC for atmospheric residue desulfurization units
Chevron Lummus Global: Proprietary technology
Daelim Industrial: Repair and install sulphur recovery units
Foster Wheeler: Consultant for the clean fuel project
Fluor: FEED and PMC contract
Haldor Topsoe A/S: Naphtha hydrotreater, hydrogen plant and desulphurisation unit revamp
Honeywell: Technology for existing FCC and hydrocracker
Larsen & Toubro: Reactors and pressure vessels
Siemens AG: Turnkey contract - completed upgrades to high-voltage substations as part of a greenfield development to increase power stability and expand crude processing capacities at the refineries under KNPC’s Clean Fuels Project. (August, 2016)
Shell: Two new sulphur recovery units
Tecnimont: Develop an acid-gas removal plant
Daewoo Engineering & Construction Co Ltd, Hyundai Heavy Industries Co Ltd and Fluor Corp.: EPC work
Samsung Engineering Co Ltd, Petrofac Ltd and Chicago Bridge & Iron Company NV. GS: US$1.62 billion EPC order for the Mina Abdullah refinery
Engineering & Construction Corp, Engineering & Construction Co Ltd SKEC.UL and JGC Corp.: EPC work
SPIE Oil & Gas Services: Commissioning management and support services at both Mina Al Ahmadi (MAA) and Mina Abdullah (MAB) refineries under Clean Fuels Project (CFP) scope of work. (October, 2016)
Sub-contractors
Mushrif Trading & Contracting Co.: Contract for work related to the Mina Abdullah refinery providing civil works for an expansion project associated with KNPC’s CFP plans valued at US$14.5 million for period of about 14 months. MTTC’s scope of work under the project is due to run from Feb. 15, 2015, to Apr. 15, 2016. In addition to earthworks, concrete works, and road paving, the majority of MTTC’s activities under the contract will be related to installation of pipe-rack foundations and sleepers, structural steel erection, and supply-installation of underground piping in existing interconnections of pipe rights-of-way in the refinery’s current configuration.