State-owned Petrochemical Industries Company (PIC) is close to making a decision on a partner for its planned third olefins cracker in Kuwait.

The shape of the venture is also being finalised, according to a source close to the project. PIC currently prefers the joint venture model. 

A final decision on the international partner was expected before the end of 2011 as PIC drew to a close on its feasibility study. Local subsidiaries such as Equate Petrochemical Company are being considered.

Equate is a joint venture between PIC, the US’ Dow Chemical, the local Boubyan Petrochemical Company and Qurain Petrochemical Industries Company.

PIC has shortlisted a number of potential partners on the basis of technology and market access. These include Dow Chemical, which already has a number of joint ventures in the country.

Hamad Dakheel al-Sebaie, manager of corporate planning at PIC said in November that the firm was targeting the Al-Zour area for the plant’s location, which is also the site of Kuwait’s planned fourth refinery.

PIC hopes to start production in 2017 from the cracker, which will use a mixed feed of gas and liquids. The complex will produce 1.4 million tonnes a year (t/y) of ethylene, 450,000 t/y of linear low density polyethylene and high density polyethylene, along with 600,000 t/y of glycols. No further details on the complex’s product slate have been announced.