Kuwait's PIC Signs Contract with US Jacobs for Plant in Canada
KHOBAR, Saudi Arabia, Nov 4 (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 neighbours 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. (Reporting by Reem Shamseddine; editing by Alexander Smith)
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