Client
Kuwait National Petroleum Company (KNPC)
Location
Al Zour, approximately 90 kilometers south of Kuwait City

KNPC Al-Zour Oil Refinery Project

Fluor has a long-standing relationship with Kuwait National Petroleum Company (KNPC) spanning more than 50 years. Fluor's joint venture FDH JV team was selected by KNPC as the preferred bidder for major engineering, procurement and construction (EPC) packages for the new Al-Zour Refinery project. The FDH JV team will execute the EPC of Packages 2 and 3 of the Al-Zour Refinery on a lump sum basis. The Al-Zour Refinery is located in Al Zour, approximately 90 kilometers south of Kuwait City, adjacent to the existing Al-Zour South Power Plant. When completed, the new complex is expected to be one of the largest refineries in the world, producing 615,000 barrels per day.


KNPC Al Zour Refinery Sketch - EPC
Client's Challenge

KNPC is constructing a new world-class grass roots refinery in Kuwait to produce low sulfur fuel oil to replace high sulfur fuel oil used in local power plants. This large-scale refinery is designed to process 615,000 BPD of light Kuwait crude oil or 535,000 BPD of heavy mix Kuwait crude oil. This refinery uses the latest technology to comply with stringent environmental regulations to protect the local environment, and at the same time produces the latest environmentally friendly ultra-low sulfur diesel fuels for worldwide markets as well as jet fuel, kerosene and naphtha feedstock for petrochemical plants.

The Al-Zour Refinery will use a combination of conventional and proprietary licensed hydro processing technologies to convert the light and heavy crudes into low sulfur fuel oil (LSFO) and lighter products.


KNPC Al Zour Refinery Process Sketch - EPC
Fluor's Solution

Fluor is leading the FDH JV, partnering with Daewoo Construction and Engineering and Hyundai Heavy Industries. This JV is also executing the brownfield and greenfield KNPC Clean Fuels MAB2 project at the nearby KNPC Mina Abdullah refinery in Kuwait. FDH JB provided KNPC with the most competitive lump sum EPC offer for a combination of two packages for the Al-Zour project, thus securing the contract.

These packages (#2 and #3) include scope and technology similar to the greenfield MAB2 project, however, of larger capacity and/or with more (parallel) trains. The scope includes process units, utilities and infrastructure for the new Al-Zour Refinery project.

The contract was signed October 2015 and completion of the facility to KNPC is planned for May 2019. FDH JV will lead the project from the Fluor Amsterdam office, supported by offices in New Delhi, Al-Khobar, Kuwait, Houston and Seoul. Sourcing of materials will be global, however, with a preferential treatment to local suppliers and subcontractors. There will be large scale off-site pipe fabrication and a partial modular execution strategy with close to 200 modules. Peak labor at the site in Kuwait is expected to be 17,000 people.

Realization of the entire Al-Zour Refinery has been divided by KNPC into five discrete Packages as follows:

  • Package 1 – Main Process Units (by others)
  • Package 2 Support Process Units – Includes Hydrogen Recovery Unit (HR), Hydrogen Compression Unit (HC), Hydrogen Production Units (HPU), Sour Water Stripper Unit (SWS), Amine Regeneration Unit (ARU), Sulfur Recovery Units (SRU) and Tail Gas Treating Unit (TGTU), Flare, Sulfur Pelletizing / Conveying, Acid Gas Flare, Sulfur Storage Area
  • Package 3 Utilities and Offsites – Includes Steam Generation Unit, Air Systems, Water Systems, Cooling Water Unit, EICS & ICSS, HV Substations, Interconnecting Piperack, Wastewater Treating, and a large size campus area with Administration Building, Training Center, Laboratory, Mosque, HSE/Clinic/Fire-brigade, Central Control Room, Supermarket and dozens of refinery support buildings for security, operations and maintenance
  • Package 4 – Tank Farm (by others)
  • Package 5 – Marine and Export Facilities (by others)



Conclusion

The Al-Zour Refinery will be built on a greenfield site located south of Kuwait City.