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Kuwait approves major petchems project

3 October 2025

 

State-owned Kuwait Petroleum Corporation (KPC) has given its subsidiary Petrochemical Industries Company (PIC) preliminary approval to proceed with negotiations with a potential partner for its planned olefins plant in the country.

The project, known as Olefins IV, is estimated to be worth $500m, according to MEED Projects.

The latest approval from KPC for the project comes after the availability of the necessary feedstock for the project was confirmed, according to KPC’s most recent annual report.

In July, MEED reported that feasibility studies for the project had been completed, but PIC was waiting for confirmation of the volumes of gas that would be available for the project as feedstock.

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

There is currently uncertainty at PIC about when the front-end engineering and design work for the project will commence, according to industry sources.

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 OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDF

Private sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking

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

> AGENDA 1: A new dawn for PPPs
To see previous issues of MEED Business Review, please click here
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Wil Crisp

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