BACK TO LIFE, BACK TO REALITY
Kuwait is embarking on a project to revolutionize its hydrocarbon industry, once again. New projects are garnering a massive amount of investment and ensure the country will remain competitive in the industry.
In April of 2014, Kuwait began the third stage of developing its hydrocarbon industry, following its establishment in the 1960s, and subsequent modernization in the 1980s. This time, the Kuwait National Petroleum Company (KNPC) initiated the Clean Fuels Project (CFP) to place Kuwait amongst the top producers in the downstream industry.
The project aims to expand and redevelop the Mina Al-Ahmadi (MAA) and Mina Abdullah (MAB) refineries, with 346,000 and 454,000bpd, respectively, bringing total capacity to 800,000bpd. The two refineries will also be linked to create an integrated refining complex, with increased flexibility to cater to growing and changing local and international demand. Lastly, the project envisions enhancing the performance of both refineries by optimizing energy usage and implementing better safety and operational regimes. As part of the project, KNPC plans to permanently close the Al-Shuaiba refinery and channel its outpost into the expanded refineries, as well as into the new greenfield refinery complex, Al-Zour, which will open in 2018.
The primary innovation is the conversion of high sulfur oil with low value into higher-value products with sulfur levels of no more than 5%. To achieve this, new technologies include a gas oil desulphurization station, a vacuum distillation unit, and a delayed coking unit, as well as a sulfur-recovery system. Furthermore, the two refineries will be upgraded to produce diesel and kerosene for export.
In line with commitments made by HH Al-Amir during the Paris Agreement on Climate Change, Kuwait is taking steps toward the production of fuel with cleaner output in integrated and more energy-efficient production facilities.
In April 2016, KNPC concluded a domestic loan of USD3.9 billion for investments in the CFP project, put together by NBK and Kuwait Finance House and supported by a group 11 banks. For further financing, KNPC anticipates to attract another USD4 billion loan for further investments, this time with foreign lenders. According to KNPC's CEO, Mohammad Ghazi Al-Mutairi, the loan will be backed by South Korean, Dutch, British, and Italian export credit agencies.
Due to available resources, manpower, and the overall scope and impact of the project, the contracts were divided into three packages: one for MAA and two for MAB. The EPC package, the first for MAA, was inked by a consortium of the Korean GS E&C, SK E&C, and the Japanese JGC Corporation and has a total value of KWD1.36 billion. The second package has a contract value of KWD1.1 billion and is led by Petrofac and supported by Samsung Engineering and CB&I Nederland.
The third package, for the redevelopment of the Mina Abdullah refinery, went to a consortium led by Fluor, in cooperation with Daewoo Engineering & Construction and Hyundai Heavy Industries, for KWD962 million. Fluor was also responsible for the front end engineering design (FEED) of this project, with preliminary design support of the Engineering Consultants Group (ECG). Preliminary works on the project site were awarded to Samsung and Siemens, with the latter also responsible for high-voltage substations for both refineries. Essential licensing for the desulphurization technology came from Chevron Lummus Global. Contracted for the project management services is Foster Wheeler, supported by a JV of Hill International and System Development and Project Management for on-site consulting services.
The total book value of the project is a project is KWD4.68 billion and is scheduled to be completed in mid-2018.
BACK TO LIFE, BACK TO REALITY
TABLE OF CONTENTS
Guest Speaker
Dato’ Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister , Malaysia
TBY talks to Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister of Malaysia, on the growing contribution that Islamic countries are making to the global economy and how Islamic financing can offer new opportunities to industry and academia.
read articleInterview
HE Khaled Nasser Abdullah Al-Roudan, Minister, Commerce and Industry (MoCI)
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Minister of Commerce and Industry (MoCI), on tools and strategies for diversifying the economy, the role of international players in supporting a wider range of sectors, and the rapidly developing food industry.
read articleInterview
HE Yousef Al-Ebraheem, Advisor , Al-Diwan Al-Amiri
TBY talks to HE Yousef Al-Ebraheem, Economic Advisor to the Al-Diwan Al-Amiri, on the need for a rejuvenation of Kuwait's infrastructure to support an economy that has come a long way and the role education will play in delivering the expertise required by the society.
read articleInterview
Dr. Khaled A. Mahdi, Secretary-General , Supreme Council for Planning & Development (GSSCPD)
TBY talks to Dr. Khaled A. Mahdi, Secretary General of the Supreme Council for Planning & Development (GSSCPD), on the breakdown of Kuwait's long-term economic plan, the KPIs that will benchmark its success, and what Vision 2035 means for the nature of the economy.
read articleInterview
Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
TBY talks to Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General of the Kuwait Direct Investment Promotion Authority (KDIPA), on launching an investment promotion conference, attracting the right partners for PPP, and expectations for the year ahead.
read articleInterview
HE Dr. Mohammad M. Al-Zuhair, Executive Chairman, Kuwait National Fund for Small and Medium Enterprise Development
TBY talks to HE Dr. Mohammad M. Al-Zuhair, Executive Chairman of the Kuwait National Fund for Small and Medium Enterprise Development, on empowering young Kuwaitis, IT and entrepreneurialism, and the growth of fintech.
read articleFocus: Still all in the family?
Merchant families in Kuwait
Family-owned businesses play a major role in the Kuwaiti economy. However, with many approaching the third generation of management, they are starting to come across unique problems that may pose issues for the greater economy.
read articleInterview
HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director, Environmental Public Authority (EPA)
TBY talks to HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director of Environmental Public Authority (EPA), on how oil companies can contribute to Kuwait's vision on sustainability and the various projects that are coming to fruition.
read articleInterview
Dr. Samira S. Omar Asem, Director General, Kuwait Institute for Scientific Research (KISR)
TBY talks to Dr. Samira S. Omar Asem, Director General of the Kuwait Institute for Scientific Research (KISR), on commercializing the green innovations coming from R&D initiatives, the role of collaboration across multiple sectors, and projects that we should expect to see more of in the future.
read articleInterview
Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO, Boursa Kuwait Company
TBY talks to Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO of Boursa Kuwait Company, on the takeover of the Kuwait Stock Exchange and the role the bourse plays in both the privatization of government entities and as a source of capital for family businesses.
read articleInterview
HE Essam Abdul Mohsen Al-Marzouq, Minister, Oil & Minister of Electricity and Water
TBY talks to HE Essam Abdul Mohsen Al-Marzouq, Minister of Oil & Minister of Electricity and Water, on cooperation with other ministries, the private sector's role in energy, and upcoming regulations.
read articleInterview
Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector, Ministry of Public Works
TBY talks to Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector at the Ministry of Public Works, on Kuwaiti companies, the country's healthcare facilities, and the role of international companies.
read articleInterview
Khaled K. Al Mashaan, Vice-Chairman & CEO, ALARGAN International Real Estate Company
TBY talks to Khaled K. Al Mashaan, Vice-Chairman & CEO of ALARGAN International Real Estate Company, on drivers of growth, operating throughout the region, and real estate prices in Kuwait.
read articleInterview
Tawfiq Ahmed Bin Sultan, Chairman, Middle East Telecommunications Company (METCO)
TBY talks to Tawfiq Ahmed Bin Sultan, Chairman of the Middle East Telecommunications Company (METCO), on e-government potential, the future of the economy, and the state of technology uptake in Kuwait.
read articleInterview
Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General, Kuwait Ports Authority (KPA)
TBY talks to Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General of Kuwait Ports Authority (KPA), on his operational plans for the near future and turning Kuwait into a regional logistics hub.
read articleInterview
HE Khaled Nasser Abdullah Al-Roudan, Acting Minister, State for Youth Affairs
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Acting Minister of State for Youth Affairs, on e-platforms and blended learning programs, developing ICT skills, and preparing young people for tomorrow.
read articleInterview
Eng. Ali Hussein Al Youha, Secretary-General, National Council for Culture, Arts and Letters
TBY talks to Eng. Ali Hussein Al Youha, Secretary-General of the National Council for Culture, Arts and Letters, on the activities of the Council and works to preserve and enhance Kuwait's cultural heritage.
read article