The petrochemical industry dates back to the 1960s and Kuwait has been actively producing ammonia and nitrogen fertilisers since then.

The industry continued to evolve and grow constantly adapting to the latest developments in technology and using Kuwait's natural gas as its feedstock.
The petrochemical industry managed by the Petrochemical Industries Company (PIC), a KPC subsidiary, has not only established a firm footing for itself in ammonia and urea marketing at home, but has also set about establishing external affiliates for the production of a wider range of chemical fertilisers. The location of such affiliates in various geographical regions makes it easier for PIC to supply its markets.
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 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.
The first chemical fertiliser complex in Kuwait and the region was set up in Shuaiba Industrial Area, some 50 km south of Kuwait City. It comprised four plants (for the production of ammonia, urea, ammonium sulphate and sulphate and sulphuric acid), the construction of which was completed in 1966.
Since 1966, the complex has expanded as new plants were completed. In 1970, four more plants - two for liquid ammonia and two for urea production - were added.
Another new ammonia facility was built in 1984, boosting the ammonia and urea production capacity of PIC so that it became the largest in the Middle East. PIC is also a force in the salt and chlorine area.
A PIC complex for the production of these products, also located in the Shuaiba Industrial Area, is based on the latest technology to meet international quality standards and specifications.
In 1973, PIC bought the equity of BP and Gulf in KCFC. On 28 January, 1975, KCFC was merged with PIC.
The ownership of the Salt and Chlorine Plants in Shuwaikh Industrial Area had been transferred during 1974 from the Ministry of Electricity and Water to PIC.
A ministerial resolution was issued on January 11, 1976 transferring the ownership of all the private sector's equity in PIC to the state. Later on, Amiri decree No 6 for the year 1980 was issued, establishing Kuwait Petroleum Corporation (KPC) and transferring PIC shares to it.

EQUATE 1
In June 1989, PIC took a major step toward petrochemical industry. A licence and basic engineering agreement was signed by PIC and Union Carbide Corporation to build a 100,000-tonne per year polypropylene plant. Polypropylene is a large-volume plastic  used in a wide range of applications, from woven sacks for fertilisers and vegetables to carpeting, containers, outdoor furniture, toys and car components.
The Iraqi invasion put a hold on plans for this plant but the project was reactivated after the liberation of Kuwait. In the last quarter of 1997, this facility went on-stream.
The main contract tender for the Polypropylene Project was issued on 17.7.1994 to pre-qualified contractors, and the contract was signed in January 1995.
The construction period was fixed at 29 months.
On June 19, 1993, the company signed a memorandum of understanding with Union Carbide Corporation for the construction of the Petrochemicals Complex at the Shuaiba Industrial Area.
 The project, which is one of the largest projects in the world at present, was on stream late 1997. It consists of units to produce 650,000 tonnes of ethylene and its derivative polyethylene and Ethylene Glycole annually.
On July 11, 1994, the Amiri Decree No 138/94 was issued to amend and increase the capital of the company to KD315 million, followed by another increase on year 2000 that increases the capital to 10,400 million.
On July 15, 1995 the company signed the memorandum of association of Equate Petrochemicals Company with Union Carbide. Each company holds 45 per cent of the capital and Boubyan Petrochemicals Company holds 10 per cent of the capital.
Boubyan Petrochemical Company (BPC) was established in February 1995 with a capital base of KD30 million ($100 million), through a public offering, mainly as a vehicle to enable the private sector to invest in the petrochemicals sector.
This was made possible through its 10 per cent equity stake in Equate. As of the end of December 2000, BPC's total assets were in excess of KD43 million.

EQUATE 2
On the lines of the successful Equate petrochemical venture, PIC and the Dow Chemical Company (DOW), announced 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: MEGlobal, a 50/50 global joint venture for the manufacture and marketing of merchant monoethylene glycol and diethylene glycol (EG) and Equipolymers, a 50/50 global joint venture for the manufacture and marketing of polyethylene terephthalate resins (PET) and the manufacture of purified teraphthalic acid (PTA).