Bid & Tender

Notice: Undefined property: site::$total_records in /home/teipanel/public_html/includes/class/class.site.php on line 425
Project Summary
Project Name: KIPIC’s Al Zour Petrochemicals Complex Megaproject
Facility Type: Olefins
Client: Kuwait Integrated Petroleum Industries Company (KIPIC)
Budget (US $): 10,000,000,000
Project Initiation: Sep 01, 2010
Project Completion:: Dec 09, 2024
Location: Al Zour
Project Current Status

Kuwait is continuing with feasibility studies for the planned $10bn Al-Zour petrochemicals complex, according to Nawaf al-Sabah, the deputy chairman and chief executive of Kuwait Petroleum Corporation (KPC). The company has not made a final investment decision (FID) for the project and has not revealed a schedule for when the project will be approved and tendered. (November 2023)

Project History
  • The feasibility study for the Olefins project is under way. It is expected to be completed by the middle of 2011. (December 2010)

  • Kuwait is seeking partners for the project and has plans to add new petrochemical products to its portfolio. (November 2011)

  • PIC has revived the Olefins 3 project. KBC Advanced Technologies is carrying out an initial feasibility study, which is expected to be completed in Q2 2015. (October 2014)

  • Plan to integrate the plant with the new refinery project (NRP) are under consideration and is seen as a potential way to achieve better profitability. (May 2015)

  • Plan to integrate the plant with the new refinery project (NRP) are under consideration and is seen as a potential way to achieve better profitability. (May 2015)
  • UK’s KBC Advanced Technologies, an international consultancy firm, is carrying out a feasibility study on the project to integrate the petrochemicals plant into the refinery project. (November 2015)
  • Feasibility study on the project to integrate the petrochemicals plant into the refinery project would be completed this month. (February 2016)
  • KNPC is setting up a company to manage integrating a petrochemical facility with the Al-Zour New Refinery. (February 2016)
  • The feasibility study of integrating petrochemicals plant (Olefins 3) with $14bn Al-Zour New Refinery is expected to be completed before April. (March 2016)
  • KNPC is considering three options for the project. The first option is the integration of an olefins plant, the second is the integration of an aromatics facility, and the third option is the construction of both. The most probable is the third option. KNPC is likely to build both an olefins facility and an aromatics plant, and integrate them with the NRP. (April 2016)
  • The FEED contract on the project is expected to be awarded in February 2017. (November 2016)
  • KNPC and the Petrochemicals Industries Company (PIC) signed agreements to transfer contracts of key projects – Al-Zour Refinery, Al-Zour LNG Import and Regasification Terminal, and PMC contract for Al Zour Petrochemicals Project – to Kuwait Integrated Petrochemical Industries Company (KIPIC), which is a subsidiary of KPC. (May 2017)
  • The front-end engineering and design (FEED) contract worth more than $300 million for integrating Petrochemical Industries Olefins III, Aromatics II and Al-Zour Refinery projects has been awarded to Amec Foster Wheeler of UK. It is expected to be completed by the end of June 2018. The six-year contract covers FEED leading to Project Management Consultancy for the integration project. (May 2017)
  • Tenders have been issued for three contracts. Each of the contracts is for a separate study. The tenders are: 1. Consultancy and Engineering Study for the Main Catalytic Cracking unit (RFCC) for the project of Olefins III and Aromatics II. 2. Consultancy and Engineering Study for the Polypropylene Unit for the project of Olefins III and Aromatics II. 3. Engineering Study of the Propane Dehydrogenation (PDH) for the project Olefins III and Aromatics II. (October 2017)
  • Three contracts have been awarded to American company (UOP) to provide technological assistance for the integrated petrochemical complex at Al-Zour refinery. Honeywell UOP will supply technology licenses, design services, key equipment, and state-of-the-art catalysts and adsorbents to produce clean-burning fuels, paraxylene, propylene and other petrochemicals. W. R. Grace & Co. has been contracted to license its UNIPOL® PP Process Technology for the complex. (December 2017)
  • Companies have been invited to submit pre-qualification bids for the two main EPC contracts for – Olefins 3 and Aromatics 2 plants – within petrochemicals complex project. Last date to submit pre-qualification bids is 20 September, 2018. (July 2018)
  • The deadline has been extended to submit pre-qualification bids for the main EPC contracts for two key plants – Olefins 3 and Aromatics 2 – within its mega Al-Zour petrochemicals complex project. Bids are now due to be submitted by 22 November, 2018. (September 2018)
  • The feed work is expected to complete in Q3, 2019. (October 2018)
  • KPC is seeking a $3.29bn loan from the lenders. The financing is expected to close in early 2019. (October 2018)
  • The main packages – Olefins 3 and Aromatics 2 – within its mega Al-Zour petrochemicals complex project are set to be tendered by this year-end. The pre-qualification bids have been submitted in December last year. KIPIC is also set to tender this year the marine works contract for the complex. (January 2019)
  • KIPIC has awarded a technology contract to McDermott for the basic engineering, technology license and catalyst for an integrated Low Pressure Recovery (LPR) and Olefins Conversion Technology (OCT) unit at its Petrochemical Refinery Integration Project (PRIZe) in Al Zour. Once completed, this unit will produce 330,000 metric tons per annum of polymer grade propylene using refinery by-product streams. (May 2019)
  • Client is soon set to publish the list of a list of qualified companies for the main packages – Olefins 3 and Aromatics 2 – within its mega Al-Zour petrochemicals complex project. The major consortiums that submitted pre-qualification bids include - Fluor of US / Daewoo Engineering & Construction of South Korea, Hyundai Engineering of South Korea / Tecnimont of Italy, Saipem of Italy / Hyundai Engineering & Construction of South Korea, Samsung of South Korea / CTCI of Taiwan / Consolidated Contractors Company (CCC—Lebanon), Sinopec of China / Tecnicas of Spain, and SK Engineering & Construction of South Korea / Petrofac of UK. (May 2019)
  • KIPIC has awarded a contract to Honeywell UOP for the reconfiguration of the refining and petrochemical sections of its Al Zour refinery. Honeywell, a leading licensor of refining and petrochemical process technology, will revise the configuration and capacity of the refinery’s gasoline production facilities. The company will also supply technology licenses, design services, key equipment, and state-of-the-art catalysts and adsorbents to produce clean-burning fuels, paraxylene, propylene and other petrochemicals. (July 2019)
  • Kuwait Integrated Petroleum Industries Company (KIPIC) is expected to invite bids for its planned Al-Zour petrochemicals complex in mid-2020. Kipic is making modifications to the project’s feed scope to make it commercially more feasible, which may delay the issue of the EPC tenders. (July 2019)
  • KIPIC has selected a financial advisor for its planned $10bn Al-Zour petrochemicals complex. NBK Capital, the investment arm of the Kuwait National Bank, will present financial consultancy plans to KIPIC and arrange loans from banks to partly fund the project. KIPIC would fund 30% of the project while 70% would be financed through loans from local and international banks. (October 2019)
  • The FEED works for the petrochemicals plant is expected to be completed in May 2020. (October 2019)
  • 7 pre-qualified firms have been invited to bid by 21 January, 2020 for the operation and maintenance services contract for Liquefied Natural Gas Import (LNGI) Terminal, which will be located in the Al-Zour petrochemicals complex. They are: Elengva SA, Hellenic Gas Transmission Operator SA, Korea Gas Corporation, Osaka Gas Co.Ltd / Toyo Engineering, Reganosa Services / Enagas Internacional SLU, Reganosa Services / Teekay Marine Soloutions (Bermuda) Ltd, and Tokyo Gas Engineering Solutions Corporations / JGC Corporation. The main contract for the LNG terminal was awarded in 2016 to a consortium of Hyundai Engineering Company, Hyundai Engineering & Construction Company and Korea Gas Corporation for $2.93bn. The LNG import terminal is being built to meet domestic demand for fuel and is expected to start operations in 2020. (October 2019)
  • KIPIC has invited bids by 3 May, 2020 for a contract on consultancy for project engineering and management services for its planned $10bn Al-Zour petrochemicals complex. The firms invited to bid include: Amec Foster Wheeler Group Ltd Uk, Fluor Consultants B.V, Kellogg Brown And Root Limited, Technip E&C Ltd Limited, Technip Italy S.P.A, Worley Europe Ltd. (February 2020)
  • KIPIC is set to issue the engineering, procurement and construction (EPC) tender in Q3, 2020 for its planned $10bn Al-Zour petrochemicals complex. (March 2020)
  • KIPIC has extended the bids submission deadline to 14 April, 2020 for the contract on operation and maintenance services for its Liquefied Natural Gas Import (LNGI) Terminal, which will be located in the Al-Zour petrochemicals complex. (April 2020)
  • KIPIC has extended the bids submission deadline to 6 September, 2020 for the contract on operation and maintenance services for its Liquefied Natural Gas Import (LNGI) Terminal, which will be located in the Al-Zour petrochemicals complex. (July 2020)
  • KIPIC has awarded a contract worth $223 million to Technip Italy S.P.A to provide “Consultancy for Project Engineering and Management Services at Al-Zour Refinery”. Under the contract, Technip will provide Consultancy for Project Engineering and Management Services for various projects at Al-Zour Refinery, Petrochemical Complex, LNG Import Facilities and other facilities belonging to KIPIC. (March 2021)
  • The groups pre-qualified to bid for packages one (gasoline and olefins units) and two (aromatics units), include: Fluor of US / Daewoo Engineering of South Korea / China Huanqiu Contracting & Engineering Corporation , JGC Corporation of Japan, Saipem of Italy / Hyundai Engineering & Construction Company of South Korea, Samsung Engineering Company of South Korea / CTCI of Taiwan / Consolidated Contractors Company of Lebanon, SK Engineering & Construction Company of South Korea / Petrofac International of UK, TechnipFMC of UK, Tecnicas Reunidas of Spain / Sinopec Engineering Company of China. The groups pre-qualified for package three (port and export facilities, pipelines), include: China Harbour Engineering Company of China / Saipem of Italy, Eiffage Genie Civil Marine of France / Afcon Infrastructure of India / Daewoo Engineering & Construction Company of South Korea, Hyundai Engineering & Construction Company of South Korea / Hyundai Engineering Company of South Korea, SK Engineering & Construction Company of South Korea / Larsen & Toubro of India. (April 2021)
  • KIPIC is set to tender soon a study for the feasibility of the planned petrochemicals complex. The study is expected to look at the market outlook for refined products and petrochemical products for the next 25 to 35 years. The client would then issue the main contract tenders. (April 2022)
  • KIPIC is set to invite bids by mid of this year for the planned $10bn Al-Zour petrochemicals complex. The feasibility study, has been conducted by the Edinburgh-based Wood Mackenzie Research and Consulting Group. (March 2023)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Not yet appointed
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • SK Engineering & Construction of South Korea / Petrofac of UK
  • Hyundai Engineering & Contracting of South Korea / Saipem of Italy
  • Fluor of US / Daewoo Engineering & Construction of South Korea
  • Hyundai Engineering of South Korea / Tecnimont of Italy
  • Samsung of South Korea / CTCI of Taiwan / Consolidated Contractors Company (CCC—Lebanon)
  • Sinopec of China / Tecnicas of Spain
Related Projects
KIPIC's Al-Zour Refinery Project (NRP)
Project Schedule

Q3 2010: Project Initiation 
October 2014: Project revival

May 2017: FEED contract awarded

July 2018: EoI for Olefins 3 and Aromatics 2 plants

April 2021: Shortlisting of firms for EPC of main packages

Q4, 2024: Expected start-up and commissioning

 

Project Scope

The project scope covers the petrochemicals complex megaproject at Al-Zour – the Petrochemical Refinery Integration Al-Zour scheme.

 

The Wood Group of UK is carrying out the front-end engineering and design (FEED) work on the project. Wood Group is also the project management consultant for the scheme.

 

Olefins 3 and Aromatics 2 plants will be developed as part of the petrochemicals scheme. The Olefins 3 block is estimated to be worth $1.5bn, while the Aromatics 2 plant is valued at $5bn.

 

The third parcel within the Al-Zour petrochemicals complex is a $1.3bn gasoline block.

 

The Aromatics 2 complex will also be integrated with Olefins 3 and the Al-Zour Refinery. It will convert butane to isobutane and produce clean-fuels blending components including methyl tert-butyl ether (MTBE).

 

The Al-Zour petrochemicals complex will produce 940,000 tonnes per year (tpy) of polypropylene, 1.4 million tpy of paraxylene, 420,000 tpy of gasoline, and 208,900 tpy of fuel using propane and naphtha from the nearby Al-Zour Refinery.

Project Structure:
The project client is Kuwait Integrated Petroleum Industries Company (KIPIC), a subsidiary of Kuwait Petroleum Corporation (KPC).
AtallahAl Mutairi
Address:

Petroleum Industries Company (PIC),

P.O. Box 1084,

Safat 13001,

Kuwait.

Designation: Manager (Projects & Joint Ventures)
Department: Petroleum Industries Company
Phone: +965 242-2141
Fax: +965 424-7159
Jamal Sayed HashimAl Rafal
Address:

Petroleum Industries Company (PIC)

P.O. Box 1084,

Safat 13001,

Kuwait.

Designation: Board of Directors
Department: Petroleum Industries Company
Phone: +965 242-2141
Fax: +965 244-7159
Khaled SalehBuhamrah
Address:

Petroleum Industries Company (PIC),

P.O. Box 1084,

Safat 13001,

Kuwait.

Designation: Board of Directors
Department: Petroleum Industries Company
Phone: +965 242-2141
Fax: +965 244-7159
Sa'adAl Shuwaid
Address:

Petroleum Industries Company (PIC),

P.O. Box 1084,

Safat 13001,

Kuwait.

Designation: Chairman
Department: Executive Management
Phone: +965 242-2141
Fax: +965 244-7159