Kuwait Announces Four-Year Plan to Address Petrochemical Demand

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Researched by Industrial Info Resources (Sugar Land, Texas)--Kuwait possesses about 10% of the world's oil reserves, making it the fourth-largest oil reserve holder in the world. However, the country produces only 7% of the global total, making it the 11th-largest oil producer. The country's oil industry is controlled by the government.

Kuwait faces a shortage of petrochemicals if the country's oil industry remains underdeveloped. The government has announced tentative plans to implement a $35 billion plan over the next four years to increase domestic production. This includes the development of oil and gas fields, as well as new refineries and upgrades to existing refineries.

As the government announces its intentions for the oil industry, Petrochemical Industries Company (PIC) (Safat, Kuwait) has released information about plans for Kuwait's petrochemical sector. The domestic demand for petrochemicals and their derivatives is on the rise, and PIC, along with other petrochemical companies, has found it difficult to keep up. In association with foreign companies, Kuwaiti companies have begun building in other countries to secure the abundant raw materials that Kuwait lacks. The energy sector is also taking steps toward nuclear-generated energy to free up the oil industry for petrochemical development.

In August, PIC announced that it was implementing its own $10 billion, four-year plan. According to PIC, $5 billion will be directed at constructing the company's third mixed olefins plant. Olefins III is expected to be completed in 2016 and is expected to supply domestic demand with more than 1 million metric tons of ethylene annually. Originally, PIC was expecting to invest $3 billion in the new plant, but the cost has risen with the addition of production units in response to demand. Other investments on behalf of PIC will also be geared toward supplying domestic demand and exploring foreign markets in the future.

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