Kuwait Catalyst Company (KCC), which has Advanced Refining Technologies (ART) as a major shareholder, is poised to make a bigger dent in markets with a move to double production capacity.

KCC currently has two lines with capacity to produce a total of 5,000 tonnes of hydroprocessing catalysts annually, but a third line, still in the planning stage, will add a similar volume of output. The expansion will be ready by 2015 well ahead of the commissioning of Kuwait National Petroleum Company (KNPC)’s new refinery in 2018. KCC’s third line will produce catalysts similar to ones that have been emerging from its plant at the Shuaiba Industrial Area in Kuwait, which is strategically close to the refineries of KNPC and within a reasonably short shipping distance of many refineries in the Gulf and wider Middle East.

ART is a joint venture between Chevron Products Co and WR Grace & Co and was established in the US to manufacture and supply hydroprocessing catalysts worldwide. It is a leading global supplier of hydroprocessing catalysts which remove sulphur and other contaminants from petroleum to produce more environmentally-friendly transportation fuels, and allow refiners to process less expensive feedstock.

Association with ART has enabled KCC to produce catalysts of the highest quality

The use of these catalysts is growing around the world as fuel specifications are becoming more stringent. ART, Chevron, and Grace have supplied catalysts to the region for more than 40 years and Chevron has established a number of technology relationships in Kuwait and the region.

KCC, formed by local and international investors to meet the regional crude oil refining industry’s requirement for catalysts, began production in 2001. It forged an association with ART, getting access to its R&D and enabling several new HDM (hydro de-metallisation) and HDS (hydro de-sulphurisation) catalysts to be added to the product range.

“Association with ART made it possible for  KCC to join the ranks of global catalyst manufacturers and also enhanced KCC’s technology offerings of its state-of-the-art Resid catalysts with the most advanced ARDS catalysts from the HOP and ICR technology platforms in use at the refineries,” said  KCC chairman and managing director Dr Saad Akashah. “Inclusion of new technologies and new products at KCC is being done by significant joint technology transfer efforts to improve catalyst products to impeccable quality and high performance as required by clients.”

With the onset of the global recession in 2008, the catalyst market was affected adversely and KCC’s operating performance was significantly challenged by international competition. However, the company saw there were certain realities that could not be missed. Notwithstanding delays in new developments in the local and regional crude oil refining industry, demand for improved catalysts seemed perennial and KCC seized the moment with a deft move. It signed a Catalyst Manufacturing Agreement and other deals with ART for a five-year period in 2011.

With the new agreements, ART got exclusive access to KCC’s manufacturing capacity and operations personnel leading to full integration of the plant into ART’s global manufacturing network. For KCC the plum dividend was greater access to ART’s premier catalyst technology and commercial and technical resources as it proceeded to work with it in supporting refiners in Kuwait and the region. 

“The renewed association through new agreements with ART strengthened synergy. KCC could alleviate business risks pertaining to markets, technology, performance and liquidity and managed to come out with reasonable results in all planned spheres of activity by utilising up to 80 per cent of its plant capacity in 2011 and 2012,” said Dr Akashah.
full utilisation.

“KCC and ART are jointly aiming for full utilisation of KCC’s plant capacity. Almost 70 per cent of production from KCC’s plant is exported to ART’s market outside Kuwait with 30 per cent delivered to local refineries,” he added.

As well as Dr Akashah, the KCC board comprises Rafid Al Rifai (deputy chairman), Adnan Al Bahar, Abdul Aziz Al Bahar, Anwar Bu Khamseen, Bader Al Bader and Nathan Carpenter.

The Kuwait firm’s catalysts have gained worldwide reputation for high quality. Customers include KNPC, Jordan Petroleum, Al Dorrah Refinery and Beiji Refinery (both in Iraq), Japan Energy, Nomura Japan, Wepec China, Petrochina, Formosa Thailand, S-Oil Korea, Hyundai Korea, ENI South Africa, Natref South Africa, Valero CC USA, Eurecat USA, Coop Canada and Total Belgium.

KCC’s expansion reflects a climate of new opportunities in the Middle East, says Dr Akashah. Oil refining is witnessing significant investments, largely driven by governments’ eagerness to diversify their economies away from the upstream and add value to heavy crude oils. While the catalyst market remained flat in the recent past, the buzz is that demand will outstrip supply in the near future. Construction of new refineries and clean fuel plants, upgrades to refineries and expansion projects are either to be launched, underway or in an advanced stage of completion.

The Middle East and North Africa’s catalyst market is expected to account for 33 per cent of the global refinery catalyst market by 2015. The market is also growing greener. Heavy crude is necessitating use of hydroprocessing catalysts that reduce levels of impurities present in feedstock. New-generation, high-performance catalysts are what the refining industry wants and KCC, with world-class expertise from the ART connection, believes it is in a fine position to serve aspirations.