KPC petrochemical unit’s new olefins plant to boost local gas output

• The Petrochemicals Industries Company announced its intention to broaden its main portfolio both inside and outside Kuwait through new projects to achieve a leading position.

The Petrochemical Industries Company, owned by Kuwait Petroleum Corporation (KPC), plans to develop a new olefins plant, sources said. The company has completed a feasibility study for the project, which is expected to be officially announced within a year, according to MEED magazine and Q8-Press.

The magazine pointed out that one of the factors that may delay the project’s progress is the lack of available gas to be used as raw material in the factory. It noted that the Petrochemical Industries Company has assessed whether imported LNG can be used as a raw material, in order to increase local gas production sufficiently.

One source stated, “The use of imported LNG is likely to be more expensive than domestically produced gas, but the company expects the project to remain viable.”

He added, “Profit margins from the project will increase if local gas production rises, allowing the factory to use locally sourced gas, which is naturally less expensive.”

Expanding the portfolio

As part of its long-term strategy, Petrochemicals Industries Company is working to implement its 2040 plan, which aims to expand its portfolio and leverage partnerships to add value to its products.

The company announced its intention to broaden its main portfolio both inside and outside Kuwait through new projects to achieve a leading position. It also stated its goal to expand into derivative factories linked to basic petrochemicals.

Olefins are a class of chemicals made up of hydrogen and carbon. They are widely used as raw materials in the production of chemicals and consumer products such as plastics, detergents, rubber, and food packaging.