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Enertech Issue No:24

June - July 2005

News Round Up


KASP contract to be awarded

THE KUWAIT AIRSPACE SYSTEM PLAN (KASP) is all set to be awarded in September 2005 to Stanley Consultants of the United States by the Ministry of Planning. The Directorate General of Civil Aviation (DGCA) will be and this five year contract calls for design, review and supervision of the Kuwait Airspace System Plan.

The project is estimated to cost around US$300 Million and is aimed to bring the existing system to international standards. The project includes installation of Control Systems, Approach Radar System, Supervisory Control, Data Acquisition System (SCADA), Meteorology Center and
Command Center.

The Following were their competitors

1. Mott MacDonald, U.K. along with PCR, Australia.
2. Gulf Consult, Kuwait /Wilbur Smith Associates, USA along with Hill International,USA

The estimated cost of the project is around $300 million. The scope includes rebuilding the existing system and upgrading to the international standards. The project envisages for installation of control systems, an approach radar system, a supervisory control and Data Acquisition (SCADA) system, a Meteorology Center and a Command Center.


TECHIP submits the lowest bid for Ethane Cracker Project

TECHNIP of France has been awarded the contract to build the 850,000 tonne-a-year (t/y) Ethane Cracker Plant at an estimated cost of over US$500 Million. This is part of the Olefins-II Petrochemical complex, owned by the Kuwait Olefins Company. Technip faced competition only from one company namely SK Engineering & Construction, who have put in a higher price than Technip.

The Ethane feedstock for the cracker will be sourced from the Ethane Recovery Unit at Mina Al-Ahmadi Refinery. The construction of this unit was recently awarded to Hyundai Engineering &
Construction Company of Korea.

HYUNDAI is the lowest bidder for Ahmadi Crude Oil Export Facilities Project.

HYUNDAI HEAVY INDUSTRIES has become the lowest bidder for the Ahmadi Crude Oil Export Facilities Project, by quoting a price of US$1,248 Million. The other bidder is a consortium of Tecnicas Reunidas (Spain), Saipem (Italy) and Tekfen (Turkey). Evaluation of both the bids are underway and an award is expected to be made by around November 2005 by Kuwait Oil Company, the client.

This project is intended to increase the Crude Storage Facility at Ahmadi by 11.4 million barrels. The project will have General Works, Tanks & Gravity Lines,Pumps & Metering Skids and Offshore works.

REFINERY UPGRADE AT KNPC

KUWAIT NATIONAL PETROLEUM COMPANY (KNPC) is all set to start their Refineries Upgradatio Program,which is estimated to cost US$3,500 million. Several international companies have been invited by KNPC to confirm their interest in this project and the Invitations to Bid will be issued shortly. The duration for this project is expected to be 21 months.

The Tank Farm package of the Project will involve Relocation of existing Tanks, Installation of Inter-face Detection & Transfer, Blenders, Pipeline Interface Detection Systems and installation of new tanks, together with supply and installation of 24-inch pipelines, shipping systems, pumps, instrumentation and electrical works.

This is part of the several packages planned by KNPC for upgradation and modernization of their three refineries,namely Mina Abdullah, Mina Ahmadi and Shuaiba.

Contract for supply of food to US Armed Forces

Kuwaiti Firm PWC Logistics has been awarded a contract worth US$14 Million for supplying food to the US Armed Forces in the area for a period of five years. The contract has been awarded by US Defense Logistics Agency (DLA).

According to the conditions of the contract, PWC Logistics will procure fresh and dry foods from the US and local markets and supply provisions to the US Forces based in Kuwait, Iraq, Bahrain and Qatar.

NEW DESALINATION PLANT TENDER

The Ministry of Energy has issued tenders to the following pre -qualified bidders for building a Reverse Osmosis Seawater Desalination Plant.

1. Degremont, France
2. Doosan Heavy Industries, Korea
3. Hitachi Zosen Corporation, Japan
4. Ionics, USA in association with Mohd.Abdulmohsin Khorafi & Sons, Kuwait
5. Metito, United Arab Emirates
6. Mitsubishi Heavy Industries / Mitsui & Company, Japan
7. Prweussag Germany with Hyundai Engineering & Contracting Co., Korea
8. Sasakura Engineering Company, Japan

This Engineering, Procurement & Construction (EPC) contract is estimated to cost about US$170 Million and an award is expected by end of 2005. The period of construction is two years.

This is the first time that Membrane Technology shall be employed for desalination process in Kuwait. Kuwait has been traditionally using Multi-Stage Flash Technologies (MSF) for its desalination plants as the depth and salinity of water in the northern Gulf is not ideal for Reverse Osmosis use. The Government is also concerned about the pollution aspect of it. Kuwait Bay is often affected by oil spills, rendering Reverse Osmosis Plants inoperable. The Membrane Technology is expected to make the Reverse Osmosis Plants more economical and geographically adaptable.

 

contd. 

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