PIC Costs $5 bn to Build Petrochemical Plant

Petrochemical Industries Company''s (PIC) Deputy Managing Director for Olefins, Yousef AlÜAteeqi, announced that the planned petrochemical plant, which is to produce over one million tons of ethylene per year, is estimated to cost five billion US dollars.

The figure which was provided by AlÜAteeqi is reportedly two billion dollars higher than the estimated cost given by Kuwait''s Ministry of Oil last month. The plant, which is expected to operate by 2015, is PIC''s third olefins complex and although shareholders are not confirmed yet, the project is under a preliminary and extensive study. AlÜAteeqi spoke in detail about the stateÜrun PIC''s current study on the new olefins project, which is slated to produce more than one million metric tons of ethylene and related products. AlÜAteeqi, who was the second speaker at the press conference, spoke more about the projects and products of the company, adding that 44 million safe work hours have been achieved.

The press conference, which was EQUATE''s first, was organized for members of the press in order to highlight their biggest achievements and to familiarize them about the company''s objectives and background. The main presenter at the press conference was EQUATE''s Chief Executive Officer (CEO) and President, Hamad AlÜTerkait, who introduced the company in their head quarters in Salmiya, where great emphasis was made on the number of safe working hours at their plant in Shuaiba.

The CEO announced during the press conference that the company has posted a net profit of 510 million US dollars in 2009 and $4.4 billion since EQUATE was founded, emphasizing the fact that, since its establishment, the company''s profits amount to six times as much as its initial capital. AlÜTerkait also spoke about the EQUATE''s production objectives, partners in growth (such as The Dow Chemical Company, Petrochemical Industries Company... etc), products and their production history since the foundation of the company. AlÜTerkait noted that five billion dollars were spent since EQUATE was founded in 1996, 55.1 percent Kuwaitization has been achieved, and that sales have increase by 200 percent since 1998.

The CEO went on to speak about future projects for EQUATE, including the Near Zero Liquid Discharge (NZLD) Project, CO2 Recovery Project and the Sulfur Recovery Unit. Meanwhile, the third speaker, Ahmad Habib, spoke more about the technical side of the aromatics complex, its products and marketing strategies.

In other news, it has also been disclosed on Sunday that EQUATE has just signed a fourÜyear contract with Jassim Transportation and Stevedoring Company (JTC) to provide haulage and other local overland transportation for the Shuaiba plant and their port operations. JTC''s Chief Operation Officer (COO), Andreas Mohr said, "Our focus on quality service and health and safety has enabled us to qualify for this award. To win this contract, we had to compete with strong local transportation companies in Kuwait. We are very pleased to be given this opportunity to work with a petrochemical giant like Equate. We aim to cater to their transportation needs in our best ability."

In addition, Mohr also said, "JTC has been very successful in catering to the needs of the oil and gas industry with a number of major players. The services offered to Equate are part of our ongoing expansion strategy to enter new markets in the transportation business, locally as well as regionally."

According to press statement from EQUATE, JTC''s contract went into effect starting Jan. 1, 2010, and it also includes the overland haulage and transportation of containers from the Shuaiba port to EQUATE. JTC owns and operates a modern fleet of trucks and trailers to provide flexible transportation solutions. JTC currently operates a fleet of trucks in excess of 1000 units, engaging in transportation services throughout the Northern Gulf, the press statement read.