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Top Kuwait panel to approve $15bn refinery

Kuwait City, March 4, 2010

A previously stalled $15 billion project to build a 615,000 barrels per day (bpd) refinery in Kuwait is likely to be revived by a key technical committee at the weekend, a newspaper reported on Thursday.

The Al-Rai daily said, in an unsourced report, a decision on the new refinery was expected to be made when the technical committee of Kuwait's highest oil policy body meets on Sunday.

Officials have said the Supreme Petroleum Council has again reviewed pushing the Al-Zour refinery project aimed at providing fuel supplies, most of which are now imported, to domestic power plants.

Opec member Kuwait had in March last year scrapped plans to build the country's fourth refinery on opposition from several lawmakers who questioned the tender process.

Tension between parliament and the cabinet has delayed a number of other energy projects, but sources told the newspaper the refinery project relaunch was "not in doubt because it is part of development plan" approved by parliament last month.

The refinery would eventually replace the older 200,000 bpd refinery at Shuiba and produce low-sulphur fuel oil.

Kuwait is the world's fourth largest oil exporter. It pumped 2.28 million barrels per day of crude in January, according to a Reuters survey. - Reuters




Tags: Kuwait | Refinery | SPC | panel |

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