Kuwait plans new 600,000 bpd refinery
Posted: 25 April 2005
Kuwait has decided to build a new 600,000 barrels per day (bpd) refinery to boost capacity to about 1.5 million bpd, an oil executive said.
Work on the new refinery, the fourth in the emirate, is scheduled to start in 2007 and production will begin in early 2010, project manager Ahmad Al Jeemaz told local news.
Kuwait National Petroleum Company (KNPC), which owns all refineries, initially planned to establish the new refinery at a production capacity of 450,000 bpd at a cost of between three to $4 billion.
The refinery will produce 225,000 bpd of fuel oil needed for domestic consumption to operate power plants, and 375,000 bpd of oil products intended for export, Jeemaz said.
It will however produce only oil products after Kuwait starts importing natural gas from neighbouring countries to operate its power plants, he said.
Kuwait has three refineries at Al Ahmadi, Shuaiba and Mina Abdullah, all in the emirate's oil-rich southern region, which have a combined refining capacity of 915,000 bpd.
The Opec member sits on 10 percent of the world's proven oil reserves and it currently produces at full capacity of 2.6 million bpd.
Kuwait plans to invest up to $40 billion in the next 15 years to modernise its oil sector which generates more than 90 per cent of public revenue.
Posted by Editor Pipeline Magazine
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