ShareKUWAIT: Oman Oil Company (OQ), chemical manufacturing company (SABIC), and Kuwait Petroleum International (KPI), signed a project development deal for a jointly owned petrochemical complex in Omani special economic zone, Duqm.
The agreement aims to develop a petrochemical complex with a steam cracker, derivatives unit and a Natural Gas Liquids (NGL) extraction facility, as reported by a joint statement. The partners confirmed that they will conduct necessary research and utilize their technical and commercial expertise to develop a unique project that is profitable and globally competitive. The deal was signed by OQ executive director, Talal Al-Awfi, SABIC's executive director Abdulrahman Al-Fageeh and KPI's CEO Shafy Al-Ajmi. Al-Awfi stated that OQ is proud to be part of this monumental deal, especially as it comes in conjunction with Oman's 52nd National Day, and the near completion of the OQ8 Duqm refinery. The agreement, Al-Awfi commented, also goes in line with Oman Investment Authority objectives of attracting foreign investments, and achieving Oman 2040 vision through diversification of the economy.
On his part, Al-Fageeh underlined that this agreement enables the delimitation and assessment of ambitious and sustainable growth opportunities by bringing together the capabilities, expertise and technologies of the partners. He added that involvement in this project is consistent with the company's growth strategy and Saudi 2030 vision objectives of developing a stronger downstream business, and addressing challenges in the petrochemicals industry such as carbon neutrality and providing diversified and sustainable products.
KPI's Al-Ajmi commented that they are pleased to work with OQ and SABIC on this pioneering project which supports Kuwait Petroleum Corporation's 2040 strategy for growth in the petrochemical industry, and enhances integration between the refining and petrochemical sectors. The project aims to employ the use of latest technologies in the field to minimize carbon footprint, incorporate circular economy aspects and commit to high environmental standards. This would support the region's development aspirations, maximizing socio-economic impacts, as well as add value to these companies.
Petrochemicals demand is expected to continue its growth path as living standards and human development improve, particularly in growing markets close to Oman. The project intends to monetise NGLs and other feedstocks from OQ and KPI's joint venture refinery, OQ8 in Duqm, to manufacture petrochemical products targeting growing markets linked to energy transition, clean technologies, mobility, construction, durable goods, healthcare and packaging amongst others.
The project intends to deploy state-of-the-art technologies to minimise carbon footprint and incorporate circular economy aspects and commit to high environmental standards. This mega project would support the region's development aspirations, maximizing socio-economic impacts as well value addition to these companies. In addition, the project would also benefit from the excellent location of Duqm being close to markets and taking advantage of the infrastructure which has been developed in the area, as OQ continues in its strategy to help develop SEZAD as manufacturing and logistics hub in line with vision 2040.
SABIC is a global diversified chemicals company, headquartered in Riyadh, manufacturing on a global scale in the Americas, Europe, Middle East and Asia Pacific. It makes distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals.
KPI is the international downstream subsidiary of Kuwait Petroleum Corporation, ranked as one of the world's largest national oil companies. Established in 1983, KPI operates over 4,700 service stations across Europe under its brands, Q8, Q8Easy and Tango, and provides over 70 airlines with jet fuel in major airport hubs. It also runs two state-of-the-art lubricant blending plants in Belgium and Italy under the brand Q8Oils and owns shares in three joint venture refineries in Italy, Vietnam, and Oman. - KUNA and agencies
