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.
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.
Fluor to complete feasibility study in Kuwait Olefins-3
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.
In 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.
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.