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Kuwait sets pace to develop PIC Olefins-III project

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PIC Olefins-3 integrated in KNPC New Refinery Project

The wholly state-owned Petrochemicals Industries Company (PIC) is considering to relocate its Olefins-3 project along the New refinery Project (NRP) planned by Kuwait National Petroleum Company (KNPC) in Al-Zour, Kuwait.

PIC and KNPC may be defined as sisters companies as both belongs to the national Kuwait Petroleum Company (KPC).

PIC_Al-Zour_Kuwait_Olefins-3_Fluor_FEED_map.In the early 2000s years, KPC had set its vision for its petrochemical sectors through a growth strategy plan to develop PIC in three phases.

The first two phases called Horizon 1 & 2 were completed in 2010 in going global and building up strategic alliances.

For the third phase, named as Horizon 3, PIC is willing to become a key player in olefins with its project Olefins-III, or Olefins-3, and another similar project in aromatics to produce purified terephthalic acid (PTA) and polyethylene terephthalate (PET).

Originally, the PIC Olefins-3 project was supposed to start on early 2010s years, to cost $5 billion capital expenditure and to be located at Al-Shuaiba in the south of Kuwait City with an expected year of completion in 2015.

In the meantime, PIC had to rethink its strategic alliances and it selected the US-based engineering company Fluor to perform the pre-feasibility study and the feasibility study.

Fluor to complete feasibility study in Kuwait Olefins-3

Currently, Fluor is completing the feasibility study of PIC Olefins-3 project and is expected to move into the front end engineering and design (FEED) in 2014.

Unfortunately during these years of feasibility studies, the market conditions have changed bubbling all costs so that PIC Olefins-3 project is now estimated to require $7 to $9 billion capital expenditure.

PIC_Al-Zour_Kuwait_Olefins-3_Fluor_FEEDIn this new context, PIC is looking for all alternative solutions to reduce costs including to relocated the Olefins-3 project at Al-Zour in order to be integrated in the giant New Refinery Project (NRP) in order to share infrastructures and optimize the feedstock resources and the recycling of hydrocarbons by-products.

Therefore, PIC is planning to use a mixed cracker that could accept ethane, liquid petroleum gas (LPG) or naphtha as feedstock.

With this flexible sourcing of supply, PIC intends to produce:

 - 1.4 million tonne per year (t/y) of ethylene

 - 450,000 t/y of linear low density polyethylene (LLDPE)

 - 450,000 t/y of high density polyethylene (HDPE)

 - 625,000 t/y of ethylene glycol (EG)

 - 450,000 t/y of polypropylene (PP)

 - other derivatives such as acrylic acid (AA), propylene oxyde (PO)

If the integration of PIC Olefins-3 project should contribute to reduce costs or at least prevent them from further escalation, this decision may have some impact on the date of completion expected now by 2020.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer


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