http://www.eia.doe.gov/emeu/cabs/kuwait.html

Kuwaiti officials have expressed interest in accelerating development of the country's relatively small petrochemical sector. This would accomplish several goals: boosting the value of Kuwait's crude oil reserves; helping to protect Kuwait's revenues during periods of low crude prices; and boosting Kuwaiti revenues while adhering to OPEC crude oil quota limitations. Historically, Kuwait's Petrochemical Industries Company (KPIC) has mainly manufactured low-value products such as urea, ammonia, and fertilizer for export. PIC is now beginning to move upmarket to production of higher-value products.

According to the Kuwait News Agency, PIC may increase production at its polypropylene plant（＊） by 20% to 120,000 tons per year if the market price of polypropylene continues to rise. PIC's primary markets are Jordan, Syria, the United Arab Emirates, Morocco, China and Hong Kong, followed by India, Pakistan and countries in eastern Africa.

The EQUATE joint venture, involving PIC and Union Carbide, is the country's largest petrochemical project. The $2 billion industrial complex at Shuaiba, which came online in 1997, includes a 650,000metric-ton-per-year ethylene cracker, two polyethylene units with a capacity of 450,000 metric tons per year, and a 350,000 metric-ton-per-year ethylene glycol plant, all of which are currently operating.
(currently 800,000mt/yr of ethylene, 600,000mt/yr of polyethylene, and 400,000mt/yr of ethylene glycol).
The complex primarily serves the Asian and European markets. PIC and Union Carbide each have a 45% share in the project, with the remainder owned by Boubyan Petrochemical Company. The EQUATE plant was temporarily shut down by the loss of its ethane feedstock from the Mina al-Ahamdi refinery in June 2000, but has since resumed operation. In April 2001, KPIC approved a $2 billion plan to construct "Equate II," which would be Kuwait's second petrochemical complex, and would produce olefins.

＊　The Polypropylene unit is maintained and operated by Equate on behalf of Petrochemical Industries Company.

Platts 2002/11/18 　　　　　　　　　　Dow発表

PIC in talks about $3.4-bil olefins, aromatics project

Kuwait's Petrochemical Industries Company (PIC) said at the weekend it is in talks with major international companies to set up an olefins and aromatics project worth an estimated $3.4-bil.
"PIC is still continuing the negotiation with different potential partners for the project and will announce the selection as soon as we finalize and get required approvals," PIC chairman Saad al-Shuwaib said in a faxed statement to Platts in Kuwait. Oil sources said PIC is talking to at least three international companies interested in building and operating the plants under the project referred to as Aromatics and Olefins II.

Included in the talks is Dow Chemicals which, when it merged with Union Carbide, assumed its 45% stake in Kuwait's first olefin plant, Equate 1 that it had established in 1997. PIC also holds another 45% stake in Equate 1, with local company Boubyan Petrochemicals retaining 10%. The sources did not name the other companies in talks, but said Dow was enjoying a negotiating advantage because of its involvement in the Equate plant that currently produces 800,000mt/yr of ethylene, 600,000mt/yr of polyethylene, and 400,000mt/yr of ethylene glycol.

Aromatics and Olefins II is aimed at expanding Kuwait's downstream hydrocarbon industry, increasing foreign as well as private sector investment opportunities while creating some 1,400 jobs for Kuwaiti nationals. Parent conglomerate Kuwait Petroleum Corp approved the two major petrochemical projects in Aug 2001.

The first project would involve building the country's second olefins plant 'Equate 2' for an estimated $2.0-bil with a capacity production of 850,000mt/yr of ethylene, 450,000mt/yr of low-intensity polyethylene, and 650,000mt/yr of ethylene glycol. The plant would also produce around 70,000mt/yr of propylene to be absorbed by Kuwait's 100,000mt/yr capacity polypropylene factory, after its expansion.

The second project would involve an aromatics plant at a cost of around $1.4-bil designed to produce 650,000mt/yr of paraxylene and 500,000mt/yr of styrene. Oil sources said requirements for foreign partnerships in the project would include providing Kuwait with highly developed technological processes, the potential to secure petrochemical markets, and the capability to initially run operations at the plants.

2003/5/7 Dow

PIC and Dow Plan to Construct Ethylene and Derivatives Complex and Ethylbenzene/Styrene Unit in Kuwait

Petrochemical Industries Company (PIC) of Kuwait, a wholly owned subsidiary of Kuwait Petroleum Corporation, and The Dow Chemical Company announced today that they plan to construct a new ethylene and derivatives complex in Shuaiba, Kuwait, referred to as Olefins II. This project would build on the successful business relationship in EQUATE Petrochemical Company between PIC and Union Carbide Corporation, a wholly owned subsidiary of Dow. Work on the project is expected to begin in the near future with start up anticipated in early 2007.

"Olefins II would be similar to the existing plants at EQUATE with an 850,000 metric ton per annum ethane cracker and a new world-scale 600,000 metric ton per annum ethylene oxide/ethylene glycol plant using METEOR^TM ethylene oxide technology," said Mr. Saad Al-Shuwaib Chairman & Managing Director of PIC. "Each party brings unique contributions to this relationship whether feedstock and infrastructure or technical and process skills, and we are pleased to be a part of this expanded effort."

Mr. Al-Shuwaib added that this project is a further step toward executing the PIC long-term strategy in petrochemicals, and that this project has various benefits to Kuwait. In addition to adding value to Kuwaiti hydrocarbons, it will create job opportunities for qualified Kuwaitis and also provide opportunities for local contractors to participate in the execution of the project and later during operation. He added that PIC values the strong EQUATE partnership and looks forward to a similar relationship with Dow on Olefins II and future cooperation.

The existing capacity for UNIPOL^TM polyethylene would be expanded to utilize the additional ethylene. In addition to Olefins II, PIC and Dow expect to build an ethylbenzene/styrene unit of 300,000 metric tons per annum supplied with ethylene from Olefins II and benzene from the PIC Aromatics Project, to be built simultaneously on the site adjacent to EQUATE.

"We are very much looking forward to building on past and current relationships in such a meaningful way," said Theo Walthie, Dow business group president Hydrocarbons and Energy and Ethylene Oxide-Ethylene Glycol. "The environmental and safety performance of this company is outstanding. EQUATE uses a very successful business model and is a very well run company. Dow brings olefins, ethylene oxide-ethylene glycol and styrene operating experience and the very best technology available to continue and expand our synergistic relationship with PIC."

PIC and Dow indicated that these new projects could provide a basis for further cooperation between the two companies in the field of petrochemicals, inside and outside of Kuwait as opportunities arise. 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.

EQUATE Petrochemical Company owns and operates a stand-alone, state-of-the-art petrochemical complex located in Kuwait. EQUATE was established in 1995 as a joint venture between government-owned Petrochemical Industries Company of Kuwait and Union Carbide Corporation. Each holds 45% ownership with the additional 10% held by Boubyan Petrochemical Company a publicly traded company on the Kuwait Stock Exchange. Dedicated to supplying polyethylene and ethylene glycol to markets in Asia, the Middle East, Africa and Europe, EQUATE serves the rapidly expanding global demand for value-added plastics and chemicals of the highest quality.

Dow is a leading science and technology company that provides innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $28 billion, Dow serves customers in more than 170 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of Sustainable Development, Dow and its approximately 50,000 employees seek to balance economic, environmental and social responsibilities.

PIC（Petrochemical Industries Company)　　　http://www.pic.com.kw/

Petrochemical Industries Company K.S.C (PIC) was incorporated by an Amiri decree on July 23, 1963. By virtue of that decree, the first chemical fertilizer complex both in Kuwait and the region, comprising of ammonia, urea, ammonium sulphate, and sulphuric acid production was completed in 1966 at the Shuaiba industrial area.

Later, the company's industrial capacity was expanded with the addition of a further three ammonia plants and two urea plants.

In 1980, Kuwait Petroleum Corporation was formed by an Amiri decree number 6 in that year, as the holding company for the Kuwaiti oil sector and all shares in PIC were transferred to it.

PIC Strategy calls for the importance of entering into joint ventures abroad in the chemical fertilizer industry for the realization of many objectives, notably:

Fertilizer Plants :

Production Annual Production Capacity
Liquid Ammonia		858,000 M.T	used as raw material to produce urea fertilizer.
Urea Fertilizers		792,000 M.T

Gulf Petrochemical Industries Company (Bahrain) ：

This company was established on 5th December, 1979, as a joint venture between the governments of Bahrain, Kuwait and Saudi Arabia, which hold equal shares in its equity. The company's purpose is to produce Ammonia, Urea & Methanol based on natural gas.

PIC holds a stake of 33.333% in GPIC ー Bahrain capital of BD 60 million, thus the PIC share amounts to BD 20 million.

Equate Petrochemical Company

Boubyan Petrochemical Company：

PIC has a stake of 10% in the capital of Bubyan company which PIC established on 12 February 1995 to encourage Kuwaiti private sector to participate in Equate Petrochemicals Complex project.

Bubyan Company has set up future plans to expand investment in petrochemical industries. It has established Bubyan - Sharq Co. in association with the Saudi Sharq plants. Bubyan’s stake in this company is 60%, while the Sharq plants own 40%. This company has built a plant at Mina Abdulla to produce polyethylene bags utilizing PE resin produced by Equate. With 80% of the capital of Bubyan Company invested in Equate Petrochemicals Complex, its financial results depend largely on Equate financial results.

During 1999, Bubyan Company participated in several major activities. These include commencement of resin production Jubail Petrochemical Industries Company (JANA) at Jubail Industrial Area of Saudi Arabia, as well as commencing implementation of phase II of the JANA projects, i.e. the Ipocao Hydrin plant. Bubyan Company also participated in the establishment of the United Development Company in Qatar which is the first company specialized in petrochemical projects that depends on petroleum products and natural gas. The company is also specialized in energy, including the production and distribution of electrical power, manufacturing and distribution of petroleum by-products, processing of natural gas, this is in addition to other projects in the UAE.

2004/6/1 Dow

Dow and PIC Announce Formation of Two New Joint Ventures
http://www.dow.com/dow_news/corporate/2004/20040601a.htm

The Dow Chemical Company and Petrochemical Industries Company (PIC) of Kuwait, a wholly owned subsidiary of Kuwait Petroleum Corporation, announced today the formation of two new joint ventures that are designed to further develop their commercial relationship in the petrochemical industry. Subject to regulatory review and customary approvals, Dow and PIC will form:

Additionally, as announced in May 2003, Dow and PIC propose to construct:

These projects build on the successful business relationship in EQUATE Petrochemical Company between PIC and Union Carbide Corporation, a wholly owned subsidiary of Dow.

These projects combine Dow's strong existing asset base, technology position and market presence with PIC's commitment to increasing its investment in downstream petrochemical markets. Additionally, they demonstrate the commitment of Dow and PIC to better supply growing customer needs for these products around the world.

"These announcements mark an important step in the development of Dow's strategy of pursuing cost advantaged feedstock positions to supply growing markets," said William S. Stavropoulos, chairman and chief executive officer of Dow. "This business model reduces Dow's capital intensity while improving our ability to serve our customers for the long term. MEGlobal and Equipolymers strengthen the integration of these ethylene derivative businesses by strategically shifting future growth to cost-advantaged locations."

"The joint ventures announced today represent PIC's largest investment to date outside of Kuwait," said Mr. Saad Al-Shuwaib, chairman and managing director of PIC. "These further investments with Dow represent an important milestone in developing PIC's strategy to expand its participation in the global petrochemical industry."

To form MEGlobal, Dow will sell to PIC a 50 percent interest in its Canadian ethylene glycol assets. MEGlobal will purchase ethylene from Dow. MEGlobal will also market the excess EG produced in Dow's plants in the United States and Europe, and may also market the EG produced by Dow and PIC affiliates.

To form Equipolymers, Dow will sell to PIC a 50 percent interest in its PET/PTA business which includes assets in Germany and Italy.

PIC is one of six specialized subsidiaries of the state-owned Kuwait Petroleum Corporation (KPC). PIC represents the petrochemical arm of KPC and produces fertilizer and petrochemicals. PIC has invested 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 an arrangement with EQUATE.

Currently, PIC is executing an Aromatics project for the production of paraxylene and benzene in Kuwait. PIC is committed to carrying out its operations in accordance with best industry practice and to ensuring that its facilities comply with highest safety and environmental standards.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

---

June 4, 2004 The Associated Press

Kuwait buys 50 percent interest in three Dow Chemical ethylene glycol plants

The government of Kuwait is becoming part owner of three Alberta petrochemical plants in a marketing and production agreement with Dow Chemical Canada Inc.

Petrochemical Industries Co., a subsidiary of state-owned Kuwait Petroleum Corp., is picking up a 50 percent interest in one plant at Dow's Fort Saskatchewan site, just outside Edmonton, and two more at its Prentiss complex in central Alberta, The Edmonton Journal quoted Dow spokesman Doug Brinklow as saying in a story published Thursday on its Web site.

The plants make about 1 million tons a year of ethylene glycol as a raw material for polyester fibers, polyethylene resins and antifreeze.

The materials, ultimately derived from liquid byproducts from Alberta natural gas production, are in turn manufactured into consumer products ranging from clothing to water bottles.

The three Alberta plants will become part of a joint venture between Kuwait and Dow called MEGlobal, which will market more than 2 million tons of ethylene glycol annually, including production from the United States and Europe, the Journal story said.

The move into Alberta represents the Kuwait petrochemical enterprise's largest commitment to date outside its own country, company chairman Saad Al-Shuwaib said.

He described the deal as "an important milestone" in an expanded role for Kuwait in the international petrochemical industry.

The value of the transaction in Canada was not disclosed.

Dow has invested C$5.4 billion (US$4 billion) in building its Alberta complexes, which employ about 1,050 company staff.

The biggest growth markets for the output from the Canadian plants in the deal with Kuwait are in polyester fibers destined for Asia, especially the expanding economy of China.

July 01, 2004 Dow

Equipolymers begins operations
http://www.dow.com/dow_news/corporate/2004/20040701b.htm

Equipolymers, a 50/50 global joint venture between Petrochemical Industries Company (PIC) of Kuwait, a wholly owned subsidiary of Kuwait Petroleum Corporation and The Dow Chemical Company has received full regulatory approval and has commenced formal operations in the manufacture and marketing of polyethylene terephthalate resins (PET) and the manufacture of purified terephthalic acid (PTA), as a new entity.

Equipolymers will serve customers globally and will be headquartered in Zurich, Switzerland. Production facilities include PET and PTA plants in Ottana, Italy, and a PET plant in Schkopau, Germany, as well as a second PET plant in Schkopau, which is expected to start-up by the end of 2004. After the start of the new PET plant in Schkopau, the JV will have PET capacity of approximately 434,000 metric tons.

PET is a high quality plastic for use in the packaging industry and in particular for the production of beverage, food and other liquid containers. PTA is a key raw material for the production of PET.

"Our objective is to position Equipolymers as the preferred partner for brand-owners and other key-value chain players in the PET market, whilst demonstrating innovation-driven leadership" says Flavio Terruzzi, CEO of Equipolymers." Full commitment to both our customers and the PET industry remains our key priority".

PIC is one of six specialized subsidiaries of the state-owned Kuwait Petroleum Corporation (KPC). PIC represents the petrochemical arm of KPC and produces fertilizer and petrochemicals. PIC has invested 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 an arrangement with EQUATE.

Currently, PIC is executing an Aromatics project for the production of paraxylene and benzene in Kuwait. PIC is committed to carrying out its operations in accordance with best industry practice and to ensuring that its facilities comply with highest safety and environmental standards.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. Reference to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

July 01, 2004 Dow

MEGlobal Begins Operations
http://www.dow.com/dow_news/corporate/2004/20040701a.htm

MEGlobal^TM, a 50/50 joint venture between Petrochemical Industries Company (PIC) of Kuwait, a wholly owned subsidiary of Kuwait Petroleum Corporation, and The Dow Chemical Company has received full regulatory approval and has commenced formal operations in the manufacture and sale of Monoethylene Glycol and Diethylene Glycol, (EG), as a new entity in the global EG market. Daniel C. Scheid has been named President and chief executive officer of MEGlobal.

MEGlobal is headquartered in London, England, with approximately 200 employees worldwide and production facilities in Fort Saskatchewan and Red Deer, Alberta, Canada. MEGlobal serves customers around the world with ethylene glycol, a raw material for the manufacture of polyester fibers, polyethylene terephthalate resins (PET), antifreeze formulations and other industrial products.

PIC is one of six specialized subsidiaries of the state-owned Kuwait Petroleum Corporation, (KPC). PIC represents the petrochemical arm of KPC and produces fertilizer and petrochemicals.

PIC has invested 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 an arrangement with EQUATE.

Currently, PIC is executing an Aromatics project for the production of paraxylene and benzene in Kuwait. PIC is committed to carrying out its operations in accordance with best industry practice and to ensuring that its facilities comply with highest safety and environmental standards.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. Reference to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

March 01, 2005　Dow

Milestone in construction of ethylene and derivatives complex in Shuaiba, Kuwait
http://www.dow.com/dow_news/corporate/2005/20050301c.htm

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 of His Excellency, Sheik Ali Abdullah Al Salem al Sabah, Governor of Al Ahmadi, Members of Parliament, and delegates from Oil, Energy and Economical 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.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $40 billion, Dow serves customers in 175 countries and a wide range of markets that are vital to human progress: food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its 43,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

Kuwait News Agency 2005/12/5

Kuwait, China to jointly build refinery, petrochemical plant in China

Kuwait, China signed on Monday a Memorandum of Understanding (MoU) to a build a refinery and a petrochemical plant in China's Kuan Shu province as a joint-venture by both nations.

In a press statement after signing the MoU, Kuwaiti Energy Minister Sheikh Ahmad Al-Fahad Al-Ahmad Al-Sabah said the MoU was a main outcome of the visit to China by H.H. Kuwait's Premier Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah during 2004, adding that the memorandum would lead to discussing and examining the project's financial and technical aspects.

While saying it is too soon to speak about the project's details, he said the refinery's capacity would range between 200,000 to 400,000 barrels-per-day (bpd).

The refinery and the plant, he explained, are part of Kuwait's strategy to enter more oil markets that would be able to utilize Kuwait's expected 10-year level of production of 3.5 to 4 million bpd, adding that the projects will be established in one of the world's fastest growing markets of oil and its products.

When asked about China's imports of Kuwaiti oil, the minister said the current level of imports are less than desired, but the imports will increase after opening a representative office for Kuwait Petroleum Corporation (KPC) in China that would enable creating short and medium term strategies aimed at increasing Chinese imports of Kuwaiti oil, as well as establishing long-term strategies through investment projects for oil supplies, oil refinement, petrochemical plants and infrastructure.

As its energy use increases by 10 percent annually, China used about 300 million tons of crude oil during 2004 with half of it from the Middle-East.

---

Platts 2005/12/5

Kuwait and China Monday signed a memorandum of understanding to build a refinery and petrochemical plant together in China's Guangdong province, the official Kuwaiti News Agency reported.

(Kuwaiti Energy Minister) gave no details about the petrochemical plant.

Platts 2006/4/24

Kuwait, BP mull refining, petrochemical JV's in S China

Kuwait Petroleum Corp and BP held high level talks recently about common interests in potential projects in China that could include a joint-venture partnership in a refinery in Guangdong, KPC deputy chairman Hani Hussein said Sunday.
Hussein and BP Group Chief Executive Officer John Browne met in early April in London to exchange views on the oil market in general. The two also took the opportunity to go over mutual interests based on an MOU their two corporations signed 18 months ago to find joint hydrocarbon activities in Asia, Hussein told Platts on the sidelines of the 10th International Energy Forum in Doha.
"China is very important. We have an MOU with BP and we are interested in the East. We're looking for opportunities and they (BP) have identified some. We have identified some, and we looked at them," he said.
"We are both interested in China. We are also interested in pursuing common activities outside and inside Kuwait," he said, noting that the Chinese refinery project was among the potential projects discussed.
In July 2004 Kuwait and China signed an MOU to set up a duel project in Guangdong -- a 200,000 b/d and 400,000 b/d capacity refinery combined with a petrochemical complex.
The cost of the petrochemical plant alone was estimated at $5-billion. "We are waiting for them (the Chinese) to identify a project that we could cooperate with. But we are extremely interested in establishing a refining joint venture; building a new refinery that takes Kuwaiti crude," said the KPC deputy chairman.
Hussain said the Kuwait-BP MOU was not restricted to China. "We are both interested in China as well as India, as well as the rest of the Asian markets," he said.

2006/2/2　Shaw Group

Shaw Awarded Engineering, Procurement, and Construction Project for Kuwait Petrochemical Plant
http://ir.shawgrp.com/phoenix.zhtml?c=61066&p=irol-newsArticle&ID=812124&highlight=

The Shaw Group Inc. today announced that its Shaw Stone & Webster unit has been awarded an engineering, procurement and construction services contract by The Kuwait Styrene Company K.S.C. (TKSC), a joint venture between Dow Europe Holding B.V., a subsidiary of The Dow Chemical Company (NYSE: DOW), and Kuwait Aromatics Company K.S.C. (KARO) for an ethylbenzene styrene monomer (EBSM) plant to be built in Kuwait. The plant, which will produce up to 500,000 metric tons per year of ethylbenzene and 450,000 metric tons per year of styrene monomer, will be built within the existing EQUATE complex. The amount of the contract was not disclosed.

The new ethylbenzene plant will utilize proprietary EBMax technology provided by Badger Licensing LLC, a joint venture of Shaw Stone & Webster and ExxonMobil Chemical Company. Dow Europe Holding will provide the styrene monomer technology. Work will commence immediately with start-up of the plant scheduled for 2008.

J.M. Bernhard, Jr., Chairman and Chief Executive Officer of Shaw, said, "This win is another example of our ability to leverage proprietary technologies as we expand our portfolio of chemical services projects. The EBMax technology, first commercialized in 1995, is currently in use at 11 other plants around the world for a combined capacity of seven million metric tons."

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure and emergency response markets. Headquartered in Baton Rouge, Louisiana, with over $3 billion in annual revenues, Shaw employs approximately 20,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. The Company was recently named to Fortune magazine's annual list of "America's Most Admired Companies" for the second consecutive year. For further information, please visit Shaw's website at www.shawgrp.com.

2006/3/13 Foster Wheeler

Foster Wheeler Awarded Contract to Design and Build New Petrochemical Plant in Kuwait
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=fwlt&script=418&layout=-6&item_id=830512

Foster Wheeler Ltd. announced today that Milan-based Foster Wheeler Italiana S.p.A., part of its Global Engineering and Construction Group, has been awarded an engineering, procurement and construction supervision contract by The Kuwait Olefins Company (K.S.C.C.), ("TKOC") for a grassroots ethylene-glycol unit (EG2 Project) to be built at Shuaiba Industrial Area, Kuwait. TKOC is a joint-venture company with the majority shareholders being Petrochemical Industries Company (K.S.C.), ("PIC") a wholly owned subsidiary of Kuwait Petroleum Corporation, and Dow Europe Holding B.V., a wholly owned subsidiary of The Dow Chemical Company.

The terms of the award were not disclosed and the contract will be included in Foster Wheeler's first-quarter 2006 bookings.

The new world-scale EG2 unit, with a total capacity of 600,000 metric tonnes per year, is part of TKOC's planned Olefins II ethylene and derivatives complex. It will use Union Carbide's METEOR(TM) ethylene oxide/ethylene glycol process technology. It is scheduled to be completed by the second quarter of 2008.

"We successfully completed a 340,000 metric tonnes per year ethylene glycol plant, part of the EQUATE I project, at the same location during the late 1990s," said Umberto della Sala, chief executive officer, Foster Wheeler Global Engineering and Construction Group. "With this important award, we are very proud to be able to include The Kuwait Olefins Company among our repeat clients and we intend to deliver the same excellent performance for the EG2 Project."

"The award of this contract builds on the success of the EQUATE I Project," said Saad Al Shuwaib, chairman and managing director, PIC. "We are committed to building, with the help of Foster Wheeler, one of the safest and most efficient ethylene glycol plants in the world."

2008/5/12 Platts

Kuwait's KNPC awards Japan, S Korea firms $8.4 bil refinery deals

The Kuwait National Petroleum Co has awarded four of five packages from a tender for the construction of a new 615,000 b/d greenfield refinery to a group of Japanese and South Korean companies for a total of $8.4 billion, the official KUNA news agency reported late Sunday.
The refinery, to be built in the al-Zour coastal area some 85 km south of Kuwait City, was originally budgeted at around $6.3 billion before being more than doubled to around $14 billion.
The first package, for the construction of the main manufacturing units, including three 205,000 b/d crude distillation units, was awarded to an alliance of Japan's JGC and South Korea's GS at a value of $4 billion.
South Korea's SK Engineering and Construction was awarded the $2.624 billion second package for the construction of the hydrogen production units, while South Korea's Dailem Industrial Co. was awarded the $1.184 billion fourth package for the construction of a storage tank farm.
The $1.12 billion fifth package, for marine utilities, was awarded to South Korea's Hyundai Engineering.
Package 3 of the tender, for utilities and offsites, was not awarded.
KNPC said the selection was based on technical and trade criteria, rather than lowest price mode, but all winning companies offered the best bid.
The al-Zour refinery had originally being scheduled for completion in 2010, but is now not expected to be operational until May 2012.
OPEC-member Kuwait currently produces around 2.55 million b/d of crude and has a refining capacity of 930,000 b/d from its three refineries.
Kuwait will close the 200,000 b/d Shuaiba refinery, the country's oldest, when the al-Zour refinery becomes operational.

July 7 2008 EQUATE

EQUATE takes over new 600,000 metric ton Ethylene Glycol unit

EQUATE Petrochemical Company announced on Monday July 7, 2008, taking over the first process unit of the Olefins II Kuwait Program (OL2K).

At an official ceremony, EQUTE Management Team (EMT), the OL2K Program and the unit project team celebrated the signing of the Notice of Mechanical Completion Acceptance for the new Ethylene Glycol 2 (EG-2) production plant

The project was handed over by OL2K EG-2 Project Manager Thomas Roovers to EQUATE EG Unit Production Leader Arif Al-Qattan.

The EG-2 unit is a critical part of the OL2K Program, also known as the expansion of EQUATE. The capacity of the unit is 600,000 metric tons annually (MTA) of EG. Upon startup, EQUATE’s total EG production will reach about 1.15 million MTA.

The contractors, Fluor Corporation as program management contractor (PMC), Foster-Wheeler as construction manager, and Kharafi National for construction, have completed the project on schedule and under budget.

The EG-2 project construction commenced in July 2006 with the participation of over 2000 engineers and construction workers. This milestone was achieved with over 6 million safe-work hours without any loss time incidents.

Commissioning activities for EG-2 have begun and the unit is expected to be on-line during July 2008.

MEGlobal, EQUATE’s sole EG distributor, will market all production from this unit in addition to their current EG volume and will be directing these sales throughout the Middle East, Africa, Asia, Europe and the Americas.

Aug 16, 2008 Reuters

Kuwait says China refinery to cost up to $9 bln-agency

A planned refinery joint venture in southern China between state-owned Kuwait Petroleum Corp (KPC) and Sinopec Corp is expected to cost up to $4 billion above initial estimates, state news agency KUNA cited KPC's head as saying.

The Kuwait-Chinese refinery and petrochemical project is expected to cost between $8 billion to $9 billion, Saad al-Shuwaib, Chief Executive of KPC told Chinese magazine Finance and Economy, KUNA reported late on Friday.

The project, which had been estimated to have a $5 billion price tag, got the approval of China's National Development and Reform Commission, Shuwaib told the magazine.

KPC and Sinopec, Asia's top refiner, received preliminary government approval for the Guangdong plant in 2006, but negotiations for major projects in the sensitive energy sector can sometimes drag on for years.

The refinery will be designed to process 100 percent Kuwaiti crude supplied by KPC, with a capacity of 15 million tons per year, or 300,000 barrels per day (bpd), said KUNA.

KPC has said it aims to become one of China's top five crude suppliers within three years and in 2008 alone will boost imports to 115,000 barrels per day from 88,000 bpd last year.

By 2015, KPC expects to supply between 500,000 and 700,000 barrels per day of crude to the Nansha plant and a second one in Quanzhou owned by a smaller firm, Sinochem, an executive from the firm's overseas arm said in June.

Exxon Mobil and Saudi Aramco are also building a $5 billion refinery in Fujian province to help meet China's fast-growing demand for oil.