[7] The Kuwait National Petroleum Company (KNPC) first released plans to build what would have been the country's fourth oil refinery in May 2006 before construction was postponed in March 2008 due to political opposition.
Two years later, however, the government re-approved construction, and the Kuwait Integrated Petroleum Industries Company was created to manage its operations after 2019.
In May 2008, it awarded construction contracts; the largest contract was granted to a consortium of Japan's JGC Corporation and South Korea's GS Engineering & Construction, covering the installation of six distillation and atmospheric residue desulphurisation units, and diesel, naphtha, and kerosene hydrotreating plants.
[11] In March 2009, the Kuwaiti government informed the contractors to halt construction, citing a drop in oil prices.
[12] Furthermore, the project encountered political opposition by lawmakers who claimed that the government had not consulted the Central Tenders Committee before awarding contracts to foreign companies.