Kuwait Integrated Petroleum Industries Co has 6 years’ experience building, operating and managing the refining, liquefied natural gas import terminal (LNGI), and petrochemicals activities of the Al-Zour Refinery complex. Manager Operations LNGI Mohammad Fahad Al-Otaibi highlighted the current state of operations in discussion with Phil Nicholls.
For six years, Kuwait Integrated Petroleum Industries Co (KIPIC) has manged the design and construction of the AlZour complex located around 90 kilometres south of Kuwait City. The construction phase is complete for this integrated facility for refining, manufacturing petrochemicals and importing liquefied natural gas. KIPIC is now ready for the next step: opera tion.
“We commissioned our LNG import terminal on the 12th of July 2021,” explained Manager Operations LNGI Mohammad Fahad AlOtaibi. “The terminal was handed over to KIPIC and is now operated wit h great honour by KIPIC. The terminal has successfully operated since commissioning and achieved 24/7 availability for the delivery of gas to the whole Kuwaiti gas network.”
The Liquefied Natural Gas Import (LNGI) terminal at Al-Zour is the first of its kind in Kuwait. The terminal was established to meet Kuwait's growing needs for clean natural gas to generate electricity. LNGI also supplies the demands of other natural gas consumers such as oil refineries and petrochemical industries.
“KIPIC is working with a Greek company called DESFA,” Mr Al-Otaibi continued, “they are our contractor for operating and maintaining the plant for the next five to six years. Since commissioning the LNGI terminal, we have received more than 100 LNG vessels. We handled these cargoes despite the global pandemic situation and operated throughout according to all of the Kuwait Ministry of Health Regulations.”
T he world-class Al-Zour Refinery is built to encompass all th e activities and facilities required to process up to 650,000 barrels per calendar day of Kuwait crude oil. The site will produce high value products and fuel oil. The site includes a refining complex, the LNGI terminal and a facility for working in partnership with the petrochemical industry.
The Al-Zour Refinery complex is at a transition stage as it steadily works through the commissioning process, now that the construction phase is complete. The first section to become operational was the LNGI terminal. KIPIC currently has about 140 employees at the LNGI terminal, with around 1,900 employees in total, covering different sectors and operations around Kuwait.
“The terminal was successfully commissioned in July 2021,” said Mr Al-Otaibi,” after all the performance tests related to the terminal were successfully completed. Al-Zour is now open for LNGI operation, with eight huge storage tanks, each with a capacity of 225,000 cubic metres.”
Energising Kuwait
As the Al-Zour complex steadily begins operation it can fulfil its purpose of contributing to the energy demands of Kuwait withi n a sustainable framework. “We had a vision for the state of Kuwait,” Mr Al-Otaibi explained, “that one day we will have our permanent terminal LNGI and we succeeded .
“Al-Zour is set to meet the growing needs of the local market for clean fuels and natural gas to generate electric power. This is in addition to meeting the needs of other natural gas consumers, such as oil refineries and a range of future chemical industries. The decision to establish permanent facilities for importing LNG is in alignment with the strategic plan adopted by Kuwait Petroleum Corporation (KPC).”
KIPIC is taking a leading role in meeting the projected domesti c requirement for fuel within Kuwait. Al-Zour was the first project of its kind within the country, made even more challenging by the complex package of facilities built at the site. With the LNGI ter-
minal in operation, KIPIC is now in a position to contribute to supply domestic fuel within Kuwait. The levels of demand fluctuate seasonally and are affected by both the global energy crisis and industrial growth within the country. Al-Zour is thus a crucial contributor to Kuwaiti energy security.
Once the Al-Zour Refinery complex reaches full operation, it will be a double-win for Kuwait. Not only will the facility supply cleaner energy to the domestic market, but it will also contribute to increased exports by freeing up more oil for international markets. Additional exports should help mitigate the effects of the world energy shortage.
A close partnership
Any long-term infrastructure project such as the Al-Zour Refinery is a partnership between businesses. KIPIC worked closely with its partners throughout the construction and commissioning process, according to Mr Al-Otaibi: “By harnessing a culture of innovation
and progress with our suppliers, KIPIC is empowering our partners with the knowledge and capability that will transform Kuwait.
“Our vision is to establish an excellence partnership culture between KIPIC and suppliers, to maximise the benefits for both parties. We are committed to mutual respect and understanding, fairness and transparency.
“Through the project we have had more than 50,000 construction people working on a small site. This was about one percent of the population of Kuwait. Managing the workforce was not always easy, but KIPIC really appreciates all our partners in maintaining the necessary health restrictions. We overcame the pandemic and ultimately achieved our common goal; the safe and successful operation of the refinery and LNG terminal.”
During the construction phase of the project, the management of this workforce was the greatest challenge for KIPIC. However, support was available from the Ministry of Foreign Affairs, Ministry of Health, the customs department and KIPIC’s colleagues in the Kuwait Petroleum Corporation. This team established robust protocols for contractors to facilitate their entry into Kuwait.
Future energy
These manpower challenges for the LNGI terminal are now being handled by the contractor, Greece’s Hellenic Gas Transmission System Operator (DESFA), who has accepted the operating and maintenance contract. DESFA draws workers from countries across the world, who now have their entry into Kuwait eased by the KIPIC support team.
Looking to the future of Al-Zour, the global energy market remains uncertain. Thus, it is crucial that KIPIC continues to steadily work through the commissioning process for the entir e refinery complex.
The philosophy of KIPIC is to make more possible. “KIPIC is excited to energise Kuwait, to secure the reliable operation of the LNGI terminal,” Mr Al-Otaibi concluded. “I believe the whole of Kuwait is depending on KIPIC to meet its energy demands
“Therefore, I have great motivation to come in every morning and ensure that we are sending out the proper figures requested by my colleagues, especially at the Ministry of Electricity and Water. These figures demonstrate the quality of the natural gas that LNGI
“Our vision is to establish an excellence partnership culture between KIPIC and suppliers, to maximise the benefits for both parties. We are committed to mutual respect and understanding, fairness and transparency”
Mohammed Al-Otaibi Operations Manager
