State-owned Kuwait Integrated Petroleum Industries Company (Kipic) is planning to tender a contract for a detailed feasibility study for its planned Al Zour integrated complex upgrade programme (ZICUP) in April this year, according to the company’s latest annual plan.The study is expected to take one year to execute and will be tendered on a lump-sum basis.The study’s objective is to work out the best way of turning low sulfur fuel oil (LSFO) produced by the refinery into higher-value petrochemicals products while at the same time maintaining enough production of LSFO for Kuwait’s Ministry of Electricity & Water, which uses the product as fuel in power stations.Kipic said: “The study has strategic alignment to achieve up to 1.6 million barrels a day of domestic refining capacity by 2025, with maximum conversion capabilities, while ensuring maximum offtake of domestic heavy oil and meeting local energy demand and maximising integration of refining and petrochemicals operations domestically.”Kipic’s planned $10bn Al Zour petrochemicals project, which is expected to be integrated with the $16bn Al Zour refinery, has seen significant delays in recent years.The company has not made a final investment decision for the project and has yet to reveal a schedule for when the project will be approved and tendered.The delays that have taken place in recent years have exacerbated concerns that an overhaul of the project is being considered. This would lead to long delays before the main contracts are tendered.The project was first announced in 2006.In January 2023, the US-based engineering company Fluor and South Korea’s SK Engineering & Construction had withdrawn from the bidding process for the project.Kipic prequalified bidders for the planned petrochemicals complex in April 2021.It published a list of bidders eligible to bid on the three main packages of the project, which is also referred to as the Petrochemical Refinery Integration Al Zour Project (Prize).The original list of the seven groups prequalified to bid for packages one and two comprised:Tecnicas Reunidas (Spain) / Sinopec Engineering Company (China)Samsung Engineering (South Korea) / CTCI Corporation (Taiwan) / Consolidated Contractors Company (Lebanon)Fluor (US) / Daewoo Engineering & Construction (South Korea) / China Huanqiu Contracting & Engineering CorporationSaipem (Italy) / Hyundai Engineering & Construction (South Korea)Technip Energies (France)SK Engineering & Construction (South Korea) / Petrofac (UK)JGC Corporation (Japan)The scope of package one includes gasoline and olefins units. It is estimated to be worth $4bn and is also known as Gasoline Engineering, Procurement and Construction (EPC) Package 5011.The scope of package two includes aromatics units. It is also known as Petrochemical EPC Package 5012.Package three, coded Marine EPC Package 5013, covers the building of port and export facilities and onshore and offshore pipelines.Originally, four groups prequalified to bid for package three, estimated to be worth $1.5bn:China Harbour Engineering Company (China) / Saipem (Italy)SK Engineering & Construction Company (South Korea) / Larsen & Toubro Hydrocarbon Engineering (India)Hyundai Engineering & Construction Company (South Korea) / Hyundai Engineering Company (South Korea)Eiffage Genie Civil Marine (France) / Afcon Infrastructure (India) / Daewoo Engineering & Construction Company (South Korea)The planned petrochemicals complex will be integrated with the Al Zour refinery, which has a nameplate capacity of 615,000 barrels a day. (ICE KUWAIT)

Fonte notizia: Meed