KUWAIT - The Aromatics Venture.

In March 1995 the Supreme Petroleum Council (SPC) approved the building of another complex at Shuaiba to produce aromatics using naphtha from Kuwait's oil refineries. Subsequently, negotiations began with Amoco (a US major now part of BP) and it was envisaged that the venture's corporate structure would be similar to that of Equate.

However, talks were suspended in mid-1996 after Amoco decided to take some time to look at the project internally. As chemicals prices dropped further during the second half of 1997, the project was shelved. (PIC had done a detailed feasibility study for the plant, which was to cost over $1.25 bn. The plant was to have the capacity to produce 600,000yt/y of paraxylene, benzene, xylene and toluene - derivatives used in a range of manufacturing industries, including synthetic-fibre production. A study was undertaken to determine the type of technology to be used).

Projects For Private Sector: In October 1998, PIC announced five new projects with a total cost of $488m which it said should be built by private Kuwaiti and foreign firms. They should be completed by 2003, with some to be on stream from 2001.

One project is to convert a disused PIC ammonia plant at Shuaiba to produce methanol. Another is a polyolyfins plant.