Kuwait enjoys a leading position in the petrochemical sector, regionally and globally, producing about 9 million tonnes of petrochemical products annually.

To further increase its production capacity, Kuwait has launched its 2040 Petrochemical Strategy.

Under the strategy, Kuwait's Petrochemical Industries Company (PIC) aims to increase its production to 14.5 million tonnes per year by 2040.

PIC aims to grow the volumes of derivative products with advanced technology and high return through partnerships with global partners in this field.

The strategy has three key pillars:

* Build leadership in select core products in polyethylene, polypropylene and ethylene glycol products.

* Expand to derivatives linked core products (PO/PGE, SAP and EA).

* Build capabilities and manpower development to fuel growth ambitions.

The strategy also aims at increasing job opportunities for Kuwaiti youth inside and outside Kuwait.

As part of the strategy, PIC aims to build several projects within and outside Kuwait. One of the projects already in operation is the Ulsan Polypropylene Company plant in South Korea, in which PIC has a substantial investment through PolyMirae.

The major petrochemical projects in the pipeline in Kuwait are:

* The Olefins III plant, being implemented by Kuwait Integrated Petrochemical Industries Company (KIPIC), a subsidiary of Kuwait Petroleum Corporation (KPC). It will be an integration between Petrochemical Refinery Integration Al Zour (PRIZe) project, the Aromatics 2 complex and the Al Zour Refinery. It will produce nearly 2.7 million tonnes per year of products comprising aromatics, polyethylene and polypropylene. It is expected to be commissioned at the end of 2024.

*The Olefins IV plant is currently under study and will include the development of a petrochemical complex to produce ethylene, polyethylene, ethylene glycol as well as specialised petrochemical products. The JV partner is yet to be selected. The complex will utilise the ethane feedstock from Kuwait. The commissioning of the project is planned in 2028

Meanwhile, in September 2022, Kuwait decided to scrap a multi-billion-dollar joint petrochemical venture in Canada after it was found to be unfeasible, reports said.

In early 2022, PIC decided to suspend the project after it suffered a loss of nearly KD71.4 million ($235.6 million) because of work stoppage and the cancellation of two project loans.

The company later presented a recommendation for a complete cancellation of the project to the Kuwait Petroleum Corporation (KPC), the top oil authority in the country.

“KPC Board of Directors has decided to cancel the project, which has an estimated cost of $2.5-3 billion, at the request of PIC,” the Alrai newspaper said.

INDUSTRIAL CITY

Kuwait is building an industrial city for chemicals and other products at a cost of around KD97 million ($320 million), reports said.

The city, located nearly 25 km southwest of the capital Kuwait City, was launched in mid-2022 and is scheduled to be completed in December, they said.

The project will comprise three main industries covering chemicals, foodstuffs and a variety of light products, Trade and Industry Minister Mazin Al-Nahid said.

PORT DEVELOPMENT

Meanwhile, Kuwait Ports Authority has launched the first phase of Shuwaikh Port Redevelopment Project being implemented at a cost of KD48.7 million ($160 million).

South Korean builder Hyundai E&C and the Gulf Construction and Marine Works Company have been awarded the main contract for the project, which will be completed within the next three years.

The project will increase the types of ships received by Shuwaikh Port.