PIC and Dow Complete Groundbreaking Ceremony for Olefins II
Posted: 09 March 2005
Milestone in construction of ethylene and derivatives complex in Shuaiba, Kuwait
Petrochemical Industries Company ( PIC ) of Kuwait , a wholly owned subsidiary of Kuwait Petroleum Corporation, and The Dow Chemical Company today entered the next phase in the construction of their new ethylene and derivatives complex in Shuaiba , Kuwait .
Under the patronage of His Excellency Sheik Ahmad Fahed Ahmad Al Sabah, Minister of Energy and in the presence His Excellency, Sheik Ali Abdullah Al Salem al Sabah, Governor of Al Ahmadi, Members of Parliament, and delegates from Oil, Energy and Economic sectors and the Private sector represented by Boubyan, Mr. Saad Al-Shuwaib, Chairman and Managing Director of PIC and Andrew N. Liveris, President and Chief Executive Officer of Dow, laid the foundation for the construction phase of the project, also referred to as Olefins II.
The project builds on the successful business relationship in EQUATE Petrochemical Company between PIC and Union Carbide Corporation, a wholly owned subsidiary of Dow.
“Since the start of the project in May 2003, we have completed several milestones, including completion of all the commercial agreements between our companies. We have also started selection of key suppliers. With this groundbreaking ceremony we are preparing for the next phase of the program and laying the foundation for the start of construction,” said Mr. Saad Al-Shuwaib. “Because of the expertise that both partners bring to the project we are on track towards an anticipated start-up in early 2008.”
Mr. Saad Al-Shuwaib added that the project fits with PIC’s long-term strategy to expand its participation in the global petrochemical industry, and that it brings several opportunities to Kuwait , including jobs for skilled Kuwaitis and local contractors during construction and operation.
“Olefins II is an important component of our strategy for participation in the Middle East . It brings us a cost competitive geographic position that will enable us to grow profitably, particularly in Asia . Given the importance of the project, we are fortunate to have PIC as our partner. We greatly value this partnership and the expertise the PIC people bring to the project. As a result, the project is moving forward smoothly,” said Liveris.
Olefins II is planned to have an 850,000 metric ton per annum ethane cracker and a world-scale 600,000 metric ton per annum ethylene oxide/ethylene glycol plant using METEOR ethylene oxide technology. The existing capacity of 600,000 metric ton per annum for polyethylene will be expanded to utilize the additional ethylene.
In addition to Olefins II, PIC and Dow expect to build an ethylbenzene/styrene unit of 450,000 metric ton per annum supplied with ethylene from Olefins II and benzene from the Aromatics Project, to be built simultaneously on the site adjacent to EQUATE. EQUATE will manage, operate and maintain the Olefins II facilities.
The business relationship between PIC and Dow also includes the recently formed MEGlobal and Equipolymers joint ventures.
PIC is one of six specialized subsidiaries of state-owned Kuwait Petroleum Corporation, (KPC). PIC represents the petrochemical arm of KPC and produces fertilizer and petrochemicals. Currently PIC is investing in the modernization of its fertilizer complex in Kuwait and expects to reach one million ton per annum of granular urea production. PIC also runs a 100,000 ton per annum polypropylene plant through special arrangement with EQUATE.
Posted by Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
