Regional News

KNPC to spend $11.6bn in five years

October 2017

Kuwait National Petroleum Company’s (KNPC) expenditure over the next five years is likely to touch KD3.5 billion ($11.6 billion), CEO Mohammad Al Mutiari said.

In an interview with the local Al-Rai daily, he said that the expenses were earmarked for ongoing projects as well as launching new ones.

KNPC is developing a clean fuels project that will upgrade and expand two of its largest refineries to make higher-value products such as diesel and kerosene for export.

Al Mutairi said the first instalment of a $6.25 billion loan from international lenders was expected to be received by the end of last month. He also said the ageing Al Shuaiba refinery will be closed, and is now up for sale.

He said a gas line project with a capacity of 805 million cu ft per day, being built at a cost of KD428 million ($1.4 billion), is currently under way.

The project entails separating methane and ethane gases through a highly intricate process, the report said.

Al Mutairi also spoke about the construction of new KD210 million ($696 million) liquid sulphur treatment facilities at Al Ahmadi refinery and work to upgrade equipment in those storages.

On the local market’s soaring demand for fuel, he noted that a warehouse in Al Ahmadi area is currently being renovated at a cost of KD75.6 million ($250 million), while a new facility would be built shortly in Al Metla’a area.

The CEO also revealed plans to build 100 new fuel stations to ensure adequate power supply amid growing urbanisation in the country.

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