The share holders of EQUATE, led by Petrochemical Industries Company (PIC) of Kuwait, a wholly-owned subsidiary of Kuwait Petroleum Corporation, and The Dow Chemical Company, Boubyan Petrochemical Company and Qurain Petrochemical Industries Company have undertaken the next phase in the construction of their new ethylene and derivatives complex in Shuaiba, Kuwait.

The ground breaking ceremony was in March '05 under the patronage of Energy Minister Sheikh Ahmad Al Fahad Al Sabah and in the presence of, Al Ahmadi Governor Sheikh Ali Abdullah Al Salem Al Sabah, PIC Chairman and Managing Director, Saad Al Shuwaib and Dow President and Chief Executive Officer, Andrew N. Liveris.
The project, also referred to as The Kuwait Olefins Company (TKOC), builds on the successful business relationship among the same partners in EQUATE.
"Since the start of the project in May 2003, we have completed several milestones, including completion of all the commercial agreements between DOW & PIC. We have also started selection of key suppliers.
With this groundbreaking ceremony we are preparing for the next phase of the programme and laying the foundation for the start of construction," said 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."
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 project 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 tonnes per annum ethane cracker and a new world-scale 600,000 metric tonne per annum ethylene oxide/ethylene glycol plant using METEOR ethylene oxide technology. The existing capacity of 500,000 metric ton per annum for polyethylene will be expanded to utilise the additional ethylene.
In addition to Olefins II, PIC and Dow expect to build an ethylbenzene-styrene unit of 450,000 metric tonne 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 has been extended to be global and includes the recently formed MEGlobal and Equipolymers joint ventures in EG & PET/PTA businesses respectively.
PIC is one of six specialised subsidiaries of state-owned Kuwait Petroleum Corporation, (KPC). PIC represents the petrochemical arm of KPC and produces fertiliser and petrochemicals.
Currently PIC is investing in the modernisation of its fertiliser complex in Kuwait and expects to reach one million tonne per annum of granular urea production. PIC also runs a 100,000 tonne per annum polypropylene plant through special arrangement with EQUATE.