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Kuwait’s upcoming Al Zour refinery expected to be delayed again (1)

Kuwait National Petroleum Company subsidiary KIPIC appears to be ready to further delay the startup of its long-delayed Al Zour refinery in Kuwait into 2021, despite being over 95% complete.  This project was previously expected to be completed by the end of this year.

The COVID-19 pandemic has been cited as the primary cause of yet another delay for Al Zour, as Kuwait has been in a full lockdown since May.  Reportedly, many contractors and service groups have asked for a declaration of force majeure due to the difficulties experienced in supply movements during this time. KIPIC is negotiating with these contractors to worth through this, and this could cause further delays as well.

Phase one of Al Zour will possibly commence in mid-2021 with a capacity for 250,000 barrels per day. Once complete, Al Zour will be the largest refinery in the Middle East with a total capacity for 615,000 bpd at a cost of $16 billion dollars.

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