Corp., Daewoo Engineering & Construction Co., and Hyundai Heavy Industries Co. for delivery of engineering, procurement, and construction on associated units and infrastructure necessary for the project, Daewoo said.
This latest contract to the Daewoo-Fluor-Hyundai consortium follows KNPC’s previous award of a $3.4-billion
contract to the venture to design, construct, and commission a second phase of the Mina Abdullah refinery in southern Kuwait as part of the CFP (OGJ Online, Feb. 19, 2014).
KNPC let a fourth contract package worth $1.5 billion
to a consortium of South Korea’s Hyundai Engineering Co.
Ltd., SK Engineering & Construction, and Italy’s Saipem
SPA to provide EPC services on an associated marine export
terminal at the refinery, KNPC said.
Since announcing the greenfield refinery, KNPC has let
several contracts for the Al-Zour plant (OGJ Online, Mar. 13,
2014; Dec. 3, 2013; Dec. 4, 2012).
The Al-Zour refinery, which will become the largest in the
Middle East upon completion, has a current overall investment cost of about $13 billion, Tecnicas Reunidas reported.
Under the CFP, KNPC plans to integrate and upgrade
the 270,000-b/d Mina Abdullah and 466,000-b/d Mina Al
Ahmadi refineries and ultimately close the 200,000-b/d refinery at Shuaiba once construction is completed on the Al
Zour plant (OGJ Online, Mar. 5, 2015).
The newly integrated refineries will operate as a merchant
complex with total capacity of about 800,000 b/d.
EIA: Benefits of lifting
US crude export ban most
evident if output rises
A study released Sept. 1 by the US Energy Information Administration was apparent cause for celebration for several oil
and gas industry groups, which took its findings as confirmation that lifting restrictions on US crude oil exports would be
a net positive for the industry as well as consumers.
EIA developed several analyses that examine the implications of removing the restrictions for the price of US and global marker crude streams, gasoline prices, crude production,
refining activity, and trade in crude and petroleum products.
The study, Effects of Removing Restrictions on US Crude
Oil Exports, was conducted in response to requests from
US Sen. and current Senate Energy and Natural Resources
Committee Chairman Lisa Murkowski (R-Alas.) and former
chairman and Sen. Mary L. Landrieu (D-La.), (OGJ Online,
Apr. 14, 2014), as well as current committee members Ron-ald L. Wyden (D-Ore.) and Maria E. Cantwell (D-Wash.).
Murkowski previously included language ending the
1970s-era ban in her Offshore Production and National
crude production during each year (OGJ Online, Mar. 3, 2015).
US gas production fell in June to 89. 5 bcfd from 89. 6 bcfd
in May, but represented an increase from 86. 6 bcfd in June
2014. Output in Texas increased during the month to 24. 92
bcfd from just fewer than 24 bcfd in May and 23. 52 bcfd in
June 2014. Pennsylvania monthly production fell to 12. 35
bcfd in June from 12. 46 bcfd in May.
Ohio and Alaska reported the most significant monthly
changes of the major gas-producing states. Ohio’s 2. 85 bcfd
in June represented a 12.6% increase from 2. 53 bcfd in May,
while Alaska’s 7. 45 bcfd in June represented an 11.6% decrease from 8. 43 bcfd in May.
Kuwait lets contracts
for grassroots refinery
Downstream Technology Editor
Kuwait National Petroleum Co. (KNPC) has let a series of
contracts to groups of oil and gas service providers to build
the planned 615,000-b/d Al-Zour refinery complex in southern Kuwait as part of the company’s Clean Fuels Project
(CFP) (OGJ Online, July 1, 2011).
KNPC officially awarded four contract packages worth an
estimated $11.5 billion for the grassroots refinery on July 28,
with a fifth contract package due to be awarded in the coming weeks, the state-run company confirmed in a series of
posts to its social media accounts.
KNPC let a $4.1 billion lump-sum turnkey contract to a
consortium of Spain’s Tecnicas Reunidas SA, China’s Sino-pec Engineering (Group) Co. Ltd., and Hanwha Engineering & Construction Corp. of South Korea to provide engineering, procurement, construction, and commissioning for
main processing units at the plant, Tecnicas Reunidas said.
The consortium’s scope of work under the contract, which is
to last 45 months, includes delivery of services for the following:
• 3 crude distillation units, each with a processing capacity of 210,000 b/d.
• 3 atmospheric residue desulfurization units, each with
a processing capacity of 110,000 b/d.
• 3 diesel hydrotreating units, each with a processing capacity of 62,000 b/d.
• 2 naphtha hyrdrotreating units, each with a processing
capacity of 18,200 b/d.
• 2 kerosene hydrotreating units, each with a processing
capacity of 53,000 b/d.
• An 8,500-b/d saturated gas unit.
• A heavy oil cooling unit.
KNPC let two additional contract packages with a combined value of about $5.75 billion to a joint venture of Fluor