MEED magazine said that the decrease in the number of bidders for the planned Al-Zour petrochemical complex in Kuwait indicates the possibility of further delays in the project.
The magazine indicated that the US-based Fluor Engineering Company and the South Korean SK Engineering and Construction Company withdrew from the bidding process for the Al-Zour Petrochemical Complex project of the Kuwait Integrated Petroleum Industries Company (KIPIC), reports a local Arabic daily.
The sources explained that the two companies were expected to participate in the engineering, procurement and construction tender process in consortia with other contractors, which raises questions about the future of this giant project.
The sources went on to say, the two companies did not disclose their non-participation in the tender process, but their possible exit casts doubt on the ability of other contractors who were looking to cooperate with the two companies to bid for the large project packages.
The sources stated that the petrochemical project had already suffered from significant delays due to shifts in the dynamics of the global petrochemical market, as the fundamentals in this sector changed dramatically in the sector during the Covid-19 pandemic and the Russian-Ukrainian war, pointing out that for most of 2022, KIPIC temporarily suspended the project, while he was awaiting the results of the feasibility study that was being conducted by the McKinsey Research and Consulting Group.
The sources added, this year, the project may witness more delays, as the company reassesses the eligibility of pre-qualified federations.
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