Project highlight: KIPIC’s PRIZe refinery integration

Kuwait

October 7, 2024

Kuwait Integrated Petroleum Industries Company (KIPIC) is constructing a USD 10-billion petrochemicals complex that will be integrated with the Al Zour Refinery. This key project will support KPC’s 2040 strategy for Kuwait’s domestic downstream sector, which calls for enhanced integration between the refining and petrochemicals sectors to boost the production capacity of petrochemicals to 14.5 million tonnes per year (tpy) and of downstream derivatives to 1.2 million tpy.

KPC’s strategy underlines that 15% of downstream capacity additions should be achieved domestically. This will add value to national resources and support an industrial and manufacturing base that will help diversify the country’s economy away from hydrocarbons. The Petrochemical Refinery Integration Al-Zour Project (PRIZe) will be a key step in reaching these goals.

EYES ON THE PRIZE: The planned USD 10-billion petrochemicals complex will be integrated with the Al Zour Refinery, which has a nameplate capacity of 615,000 bpd. Al Zour is already the largest refinery in the GCC and one of the largest LNG import terminals in the world. Once the petrochemicals facility is completed, Al Zour will become one of the largest integrated complexes globally.
The PRIZe project will enable Kuwait to produce paraxylene, polypropylene, petrol and other products to meet increasing demand in domestic and export markets. The complex is slated to produce nearly 2.7 million tpy of aromatics and polypropylene and 1.7 million tpy of petrol, providing inputs to fuel the development of local manufacturing industries.

PROJECT SCOPE: The project is expected to be broken up into three main packages. Package I, or Gasoline EPC package 5011, includes the installation of petrol and olefins units and is valued at USD 4 billion. Package II, or Petrochemical EPC package 5012, focuses on the aromatics units and Package III, or the Marine EPC package 5013, covers the construction of associated infrastructure such as a port, export facilities and onshore and offshore pipelines.

NEXT STEPS: The first of two FEED packages was completed in March 2020 and, as of October 2023, KIPIC is continuing with feasibility studies for the project’s next phases. The company is seeking partners and proposals to introduce technologies that help meet sustainability goals, such as CCS. As of June 2024, the project is still awaiting a FID.

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