{"id":8412,"date":"2023-10-26T14:38:35","date_gmt":"2023-10-26T14:38:35","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8412"},"modified":"2023-10-26T14:39:51","modified_gmt":"2023-10-26T14:39:51","slug":"8412","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8412\/","title":{"rendered":"Kuwait’s KIPIC in talks with potential partners on petrochemicals complex"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0State-owned Kuwait Integrated Petroleum Industries Company (KIPIC) is in early talks with companies to partner on an integrated petrochemicals complex worth up to 3 billion dinars ($9.70 billion), its CEO said.<\/p>\n

The company also aims to raise capacity at its Al-Zour refinery by 20-30% above the maximum 615,000 barrels per day it expects to reach this month, Walid Al-Badr told Reuters.<\/p>\n

Initial discussions have begun with three potential partners, two from Asia and one from Europe, to build an integrated petrochemical complex alongside the Al-Zour plant, Al-Badr said.<\/p>\n

“We are still in the initial stages. Memorandums of understanding have not been signed yet, but they expressed their interest and there were official meetings,” Al-Badr said, without naming the firms.<\/p>\n

The petrochemical complex, which aims to export to Europe and to boost Al-Zour’s profitability, will use about 100,000 barrels per day (bpd) of fuel oil. If a deal is reached, it aims for the plant to go into operation by 2030.<\/p>\n

It will target annual production of 2.7 million tons of aromatics and 1.7 million tons of olefins.<\/p>\n

A partnership model has not yet been agreed on and KIPIC’s parent is studying potential incentives for partners, Al-Badr said. About 60% of the project’s financing would come from local and foreign banks, and the rest would be put up by KIPIC and the partner.<\/p>\n

According to a document seen by Reuters, Kuwait’s Oil Minister Saad Al-Barrak said in August in response to a parliamentary query that an Ernst & Young study had shown a lack of investor appetite for the petrochemicals complex.<\/p>\n

REFINING BOOST<\/p>\n

The planned refining boost to up to 800,000 bpd at Al-Zour is part of KIPIC parent Kuwait Petroleum Corporation’s goal of reaching overall refining capacity of 1.6 million bpd.<\/p>\n

The increase would not entail creating new facilities but instead boosting existing units’ capacity to receive feedstock, Al-Badr said.<\/p>\n

Kuwait’s two other refineries, Al-Ahmadi and Mina Abdullah, have combined refining capacity of 800,000 bpd.<\/p>\n

When Al-Zour – currently refining about 410,000 bpd – reaches its 615,000 bpd previously stated full capacity this month, Kuwait will be able to refine 1.415 million bpd.<\/p>\n

The additional Al-Zour capacity will be possible within months of “safe and stable operation” of the facility at 615,000 bpd, Al-Badr said.<\/p>\n

Since commercial operations began last November, Al-Zour has exported 1.7 million tons of jet fuel and ultra-low-sulphur-diesel to France, Greece, the Netherlands and Britain.<\/p>\n

($1 = 0.3093 Kuwaiti dinars)<\/p>\n

Updated on