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KUWAIT (KUNA) – The Kuwait Petroleum Corporation (KPC) has announced that it has prepared an initial feasibility study in the first half of this year to turn the Zour refinery into a high-capacity commercial conversion unit. converting low-value fuel oil into high-value profitable oil products.
According to Kuna, the company said Monday that the products could be sold in international markets, which would increase the value-added of Kuwaiti refined products in the refinery and increase Kuwait's revenue from petroleum products.
Preliminary results of the feasibility study showed that the refinery's profitability would increase after increasing its conversion capacity and adding the petrochemical complex, thanks to a higher return on investment of 1.6% to 11%. , 5% for the current refinery.
She added that "the subject is still in the study stage and has not yet been adopted and no decision has been taken to continue it and no change order has been signed for modify the quality of the refinery's products being implemented, and work is also underway ".
She stated that the first phase of the refinery should be operational early in 2020. If the necessary studies are completed and evidence of continuity of feasibility to increase conversion capacity is established, the necessary approvals will be issued on required financial funds and the start of implementation.
The company confirmed that what it was doing about the Al-Zour refinery was in line with a pre-established strategy and plans approved by the relevant authorities and was a positive step towards improving profitability. of the refinery.
The refinery project will be implemented in two phases: the first phase will include the operation of the refinery and the use of fuel oil produced to partially meet the needs of the Ministry of Electricity and Energy. Water, and the second phase of the project. From the completion of the establishment of permanent facilities for the import of LNG in the long term.
"What was disbursed to implement the Zour Refinery Project is an integral part of the refinery plan, which will improve the economic conditions of the Zour refinery project and increase the return on investment. and therefore Kuwait's income from petroleum products. "
The establishment of the Zour Refinery was approved during the 2004-2005 fiscal year by the Supreme Petroleum Industry Council to provide the Ministry of Electricity and Water with low sulfur fuel oil. necessary for the production of electricity.
She added that the studies of the time had shown that the construction of a new refinery to supply the plants with low sulfur fuel was the most appropriate alternative to meet the future needs of fuel for power plants and for water, given the lack of sufficient quantities of gas on site and to block negotiations with neighboring countries to import gas by pipeline.
She explained that the refinery had been designed with low conversion capacity to produce the fuel oil needed by power plants because of Kuwait's strategic need to supply this product.
She said that she took care to take into account the design of the refinery in order to take all the necessary precautions to transform it into a refinery in order to produce higher value petroleum products if imported gas is available to increase the added value. resulting from this vital investment, stressing that this was indicated in the decision of the Supreme Council of Petroleum to Adoption of the project.
The Ministry of Electricity and Water, in coordination with the Ministry of Electricity and Water, has reviewed and updated the rates of supply and of fuel demand in the country, pointing out that the last update of 2017 indicates that the Ministry of Electricity and Water can be supplied with natural gas and liquefied gas to meet current and future needs in fuel, Fuel oil produced from a perforated filter.
In this context, it is possible to increase the conversion capacity of the Al-Zour refinery and transform it into a commercial refinery producing high-value products given the availability of an ecologically and economically viable alternative. preferable, thanks to several developments, the most important of which is the preference of the Ministry of Electricity and Water for the establishment of gas turbines. Gas turbines compared to steam.
These developments include the reduction of expected future electricity requirements in the country compared to previous forecasts and the trend towards increasing the share of renewable energy in the mix of electricity produced, which has had an impact positive on the reduction of the necessary quantities of fuel as well as on the availability of sufficient quantities on the world market of liquefied gas and on the increase of the production. Jurassic gas in the interior of Kuwait.
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