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Study complete for Kuwait chemicals project

17 July 2025

 

Kuwait’s state-owned Petrochemical Industries Company (PIC) has completed feasibility studies for a planned olefins plant in the country, according to industry sources.

The project, known as Olefins IV, is estimated to be worth $500m, according to MEED Projects. PIC is a subsidiary of state energy conglomerate Kuwait Petroleum Corporation (KPC).

“The feasibility studies went well and have been completed,” according to a source.

Olefins IV is expected to use natural gas produced by upstream operator Kuwait Oil Company (KOC), another KPC subsidiary.

“PIC is currently waiting for confirmation of the volumes of gas that will be available for the project as feedstock,” another source told MEED. 

“The volumes that will be available are dependent on projects that KOC is developing.

“The timing of the olefins project needs to be coordinated with when the new gas volumes are expected to come online.

“There is availability of gas, but the quantities need to be confirmed and finalised,” the second source said.

There is currently uncertainty at PIC about when the front-end engineering and design work for the project will commence, but sources expect more clarity once the gas volumes have been confirmed.

As part of PIC’s long-term strategy, which looks ahead to 2040, it is aiming to scale up its portfolio and leverage partnerships to add value.

The company has stated that it aims to expand its core portfolio both within and outside Kuwait through greenfield and brownfield projects, with the goal of achieving a leading global position.

It has also said that it wants to expand into downstream derivatives linked to its base petrochemicals portfolio.

Chinese chemicals

Earlier this year, Wanhua Chemical Group Company signed an equity subscription agreement in which PIC subscribed to a 25% equity stake in selected petrochemical assets of Wanhua Chemical in Yantai, China.

Olefins are a class of petrochemicals made up of hydrogen and carbon with one or more pairs of carbon atoms linked by a double bond. Two of the most important are ethylene and propylene.

Olefins are widely used as raw materials in the manufacture of chemicals and polymer products, such as plastics, detergents, adhesives, rubber and food packaging.

READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

> PROJECTS MARKET: GCC projects market collapses
> GULF PROJECTS INDEX: Gulf projects index continues climb
To see previous issues of MEED Business Review, please click here
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Wil Crisp

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