AFPM ’12: PIC may build Kuwait MEG plant

02 April 2012 18:41  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--Petrochemical Industry Co (PIC) is considering to build a new monoethylene glycol (MEG) plant at its home base in Kuwait, an executive from MEGlobal said on Monday.

“The Kuwaitis have announced their intention to build a new [MEG] plant,” Frank Hanraets, MEGlobal executive vice president for commercial and supply chain operations, told ICIS at the sidelines of the International Petrochemical Conference (IPC).

MEGlobal is a joint venture between PIC and US Dow Chemical, and markets around 3m tonnes/year of MEG.

"We are awaiting further news from PIC. However, it should be a world-scale plant of about 500,000-600,000 tonnes,” Hanraets said.

Forging ahead with its planned 1.4m tonne/year joint venture cracker project in Al Zuor, Kuwait, with EQUATE, along with a project in China, are among PIC's priorities, PIC said in its statement discussing its fiscal year 2010/2011 financial results.

The cracker project to be based on ethane and naphtha feedstocks is expected to include polyethylene (PE) and polypropylene (PP) plants.

PIC is a wholly-owned subsidiary of Kuwait Petroleum Corp, while EQUATE is a joint venture between PIC, Dow Chemical and Kuwaiti investors.

Global MEG supply is currently tight and is expected to remain so in the coming years, given shortage in gas feedstock.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC continues through Tuesday.

By: Pearl Bantillo
+65 6780 4359

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