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Sun 21 Feb 2010 10:24 PM

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Kuwait's PIC says plant to cost approx $5bn

Cost of firm's third olefins complex is $2bn higher than previous estimates given last month.

Kuwait's PIC says plant to cost approx $5bn
PLANT PROJECT: Kuwaits PIC planned petrochemical plant will cost approximately $5bn, an official said. (Getty Images)

Kuwait's state run Petrochemical Industries Co's (PIC) planned petrochemical plant will cost about $5 billion, a PIC official said on Sunday.

The figure he gave is $2 billion higher than an estimate given last month in an Oil Ministry publication.

The plant will produce over 1 million tonnes per year of ethylene and is expected to be operational by 2015, Yousef al Atiqi, PIC deputy managing director for olefins, said at a media event.

He said the project would cost "around $5 billion".

The plant would be the firm's third olefins complex, Atiqi said. Shareholders are not yet finalised and the project is still at a "preliminary studies phase", he added.

Last year, Atiqi told Reuters PIC was planning to shut its fertilisers business and focus on its more profitable petrochemicals division.

PIC's current capacity at olefins I and II is about 1.65 million tonnes per year of ethylene and its derivatives. (Reuters)

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