Kuwait: Turn-Key Project Awarded to Consortium Largest Refinery Project in the Middle East

Editor: Alexander Stark

A consortium formed by Sinopec Engineering Group, Spanish Técnicas Reunidas, and Korean Hanwha Engineering & Construction have been awarded an EPCC-Turn Key contract for a new refinery project in Al-Zour by Kuwait National Petroleum Company.

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Kuwait National Petroleum Company awards Sinopec Engineering Group the largest refinery project in the Middle East.
Kuwait National Petroleum Company awards Sinopec Engineering Group the largest refinery project in the Middle East.
(Source: KNPC)

Al-Zour/Kuwait — The estimated contract value is $ 4.240 billion. Sinopec has a 40 % interest in the Consortium and is therefore interested in $ 1.696 billion of the total contract value. The project will be the company's first EPCC project in Kuwait as well as its largest project in the Middle East in terms of contract value and project scale.

The total investment in the new refinery project in Al-Zour is expected to be approximately $ 13 billion. The refinery aims to produce and supply ultra-low sulphur oil products or other oil refinery by-products and is expected to be the refinery with the largest capacity in the Middle East. The work scope of the Consortium under the contract mainly includes the construction of three sets of diesel hydrogenation unit, two sets of kerosene hydrogenation unit and part of the public works. The contract will be an EPCC turnkey contract which includes the engineering, procurement, construction, pre-commissioning and assistance during commissioning / start-up / performance testing. The contract term is expected to be 45 months.

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