Kuwait may scrap construction of $ 15 bn refinery

Kuwait may scrap a project to build the country's fourth refinery with a capacity of 615,000 bpd, which has faced opposition in parliament, according to a government source.
The source said the decision may be taken "especially after the audit bureau confirmed that the new refinery [project] was not feasible from the economic and technical points of view", a report said.

KNPC has awarded contracts worth $ 8.4 bn on the project, including a package worth $ 4 bn to Japan's JGC and South Korea's GS Engineering and Construction.
But final contracts to build the Al-Zour refinery, valued at about $ 15 bn, have yet to be signed as the state audit bureau has launched a probe into whether the tender process showed irregularities. Some deputies have alleged that there were violations, particularly in handing out a package to US engineering firm Fluor without a tender.

Kuwait plans to boost refining capacity to 1.415 mm bpd from around 930,000 bpd with the new plant and upgrades to two other refineries.