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Kuwait's PIC signs contract with U.S. Jacobs for plant in Canada

KHOBAR, Saudi Arabia (Reuters) - Kuwait’s Petrochemical Industries Co (PIC) has signed a contract with U.S. firm Jacobs Engineering to carry out engineering and design work for a planned polypropylene plant it co-owns in Canada, Kuwait’s state news agency reported on Saturday.

Kuwait and its neighbors including Saudi Arabia are expanding their petrochemicals footprint abroad, offering them a diversified feedstock for their growth in the sector.

Canada Kuwait Petrochemical Corp. (CKPC), a joint venture between PIC, which is a subsidiary of state-run Kuwait Petroleum Corp (KPC), and Canada’s Pembina Pipeline Corp, plans to develop the facility.

Jacobs will be in charge of carrying out front-end engineering and design for a propylene and polypropylene facility in Alberta. The work includes identifying costs and a timeframe for the project. No value for the contract was given.

Work on the project is expected to be completed in the fourth quarter of 2018, KUNA reported, citing a PIC statement.

Pembina said in a statement in May that the preliminary capital cost estimate for the project is $3.8-$4.2 billion.

The facility is expected to consume 22,000 barrels per day of propane produced in Alberta, it said in May.

For more information:

J'Nette Davis-Nichols
+1 (713) 520-4426


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