KNPC finalising clean fuels megaloan

The Clean Fuels Project is being built at Mina al-Ahmadi (see map)

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Kuwait National Petroleum Company (KNPC) is in the final stages of talks with international financial institutions for the $6.4 billion second tranche of loans for its $15bn Clean Fuels Project, state news agency KUNA has reported.

The first $1.2bn tranche was agreed on 28 April with Kuwaiti lenders led by National Bank of Kuwait and Kuwait Finance House.

KUNA quoted the company’s financial advisor Khalid Al-Ajeel as saying on 29 May that KNPC is in the process of final legal reviews and agreeing pricing and interest rates.

The lenders will include export credit agencies from Europe, South Korea and Japan, Al-Ajeel said. The Clean Fuels Project involves upgrading and expanding the KNPC’s existing refineries at Mina Abdulla and Mina Al-Ahmadi into an integrated merchant refining complex. Total refining capacity will rise to 800,000 barrels a day.

The project is due for completion in 2017.