Al Zour Refinery
The Al Zour Refinery is an oil refinery under planning and development in Kuwait, a member of OPEC. The Kuwait National Petroleum Company (KNPC) first released plans to build what would have been the country's fourth oil refinery in May 2006 but it cancelled construction in March 2008 due to political opposition. Two years later, however, the government has re-approved construction and KNPC anticipates completion around 2017.
The Kuwait National Petroleum Company released plans to construct the refinery in July 2007. In May 2008, it awarded construction contracts; the largest contracted was granted to a consortium of Japan's JGC Corporation and South Korea's GS Engineering & Construction, covering the installation of six distillation and atmospheric residue desulphurisation units, and diesel, naphtha, and kerosene hydrotreating plants. Korea's SK Engineering & Construction was charged with constructing the hydrogen plants, as well as the compression and sulphur recovery units; Daelim Industrial was to construct storage tanks; and Hyundai Engineering and Construction was to be responsible for the marine works. U.S. engineering and construction firm Fluor Corporation was awarded the offsites and utilities contract. KNPC announced that it would be operational in 2012 and that it planned on spending approximately $14 billion on the project. The refinery was expected to have a capacity of 615,000 bbl/d (97,800 m3/d), which would have made it the largest refinery in the Middle East.
However, in March 2009, the Kuwaiti government informed the contractors to halt construction, citing a drop in oil prices. Some investment analysts predicted the project's cancellation as early as December 2008. Furthermore, the project encountered political opposition by lawmakers who claimed that the government had not consulted the Central Tenders Committee before awarding contracts to foreign companies.
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