Kuwait to approve $10 bln Zour petrochemical complex budget in FY 25/26

KUWAIT CITY, June 3: In view of the merger of Kuwait Integrated Petroleum Industries Company (KIPIC) and Kuwait National Petroleum Company (KNPC), the budget for the petrochemical complex project, which will be affiliated with Zour Refinery, will be approved within the 2025/2026 fiscal year, say reliable sources. Sources affirmed this is one of the important major projects of Kuwait Petroleum Corporation (KPC), which aims to position Kuwait among the largest producers and exporters of petrochemicals in the world by 2030. Sources pointed out that the merger will expedite the implementation of the project, with an estimated cost ranging from $10 billion to $10.5 billion. Sources said KPC is keen on providing high-quality petrochemical products that meet global environmental standards through the complex, which will play a major role in supplying enormous quantities of automotive fuel to meet the needs of the local market, taking into consideration the growing population of Kuwait.

Sources added “it will supply the local and global markets with petrochemical products, such as aromatics and polypropylene. These two materials are among the most widely used petrochemicals in the world, as they are essential components in manufacturing numerous consumer and industrial products, including plastics, automobiles and medical devices. Polypropylene, in particular, is a strong and safe thermoplastic capable of withstanding high temperatures.”

Meanwhile, the Secretariat General of the Supreme Council for Planning and Development explained the mega development projects on its website, indicating that the objective of the third olefins and second aromatics project, integrated with the Zour Refinery, is to expand petrochemical activity in and outside Kuwait in order to maintain the leading position of the country in the olefins and aromatics industry and diversify its exports and services as a production base. This will be achieved by encouraging downstream oil industries, while meeting the need of the local and global markets for petroleum products, in accordance with international standards and specifications.

The project will develop the petrochemical industry in the country and expand the product range of the country, specifically through the annual production of 945,000 tons of polypropylene, 1.4 million tons of paraxylene aromatics, 2.0 million tons of gasoline (car fuel) and 421,000 tons of benzene. The Secretariat General stated that the initial budget for the project has been approved, a team of experienced young Kuwaitis has been formed, and project consultants with the necessary expertise have been selected to ensure the objectives are realized within the specified timeframe. It added that the selection of technology licensors has been completed, and contracts have been awarded for the main and auxiliary fluid catalytic cracking units, polypropylene unit, propane unit, and paraxylene and benzene unit. It confirmed that the preliminary design phase, which is necessary for preparing the overall project budget, commenced before the issuance of the engineering, procurement and construction (EPC) tenders. Sources added the implementation of this project will stimulate the private sector to actively participate in downstream industries, given its dynamism.

By Najeh Bilal Al-Seyassah/Arab Times Staff