Kuwait is mulling integration of its new 615,000 bpd refinery at Al-Zour, currently under construction, with a massive petrochemicals complex. The $15 bln Al-Zour refinery was originally geared towards providing fuel oil for the state's power plants. However, in 2006, discovery of the state's first non-associated gas reserves has changed the scenario. The discovery has led to the optimism that Kuwait will be able to use gas for power generation instead, enabling Al-Zour to get converted to a full conversion refinery.
The first non-associated gas is due to be produced by state upstream operator Kuwait Oil Company (KOC) in June. The first phase will produce 175 mln cubic feet a day of gas. Start up has been delayed by two months because of poor winter weather. The first condensate production from the plant, of 50,000 bpd began in end of May.
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