Kuwait all set to be a a major global energy exporter

The year 2013 for Kuwait was noted as the richest nation of the world with USD 39,706 GDP per capita and as per the Middle East industry sources the country has heavy investments into infrastructure to boost its status as a major global energy exporter. According to the estimates from the Organisation of the Petroleum Exporting Countries (OPEC) the country is the fifth largest crude oil reserves amid the 12 OPEC member countries and the current production of crude oil is around 2.98 million barrel/day wherein about 70% of it gets exported.

This year 2014, for infrastructure projects the country will be spending USD 3.5 billion which is noted more in compare to last year. One of the UAE based market players said that to stay ahead of the camber in the Gulf Cooperation Council (GCC), the country needs to boost its infrastructure, moreover countries such as Qatar, Saudi Arabia, Bahrain, Kuwait, the UAE, and Oman embrace the GCC.

In the beginning of 2014, a power outage had hit one of the petrochemical hub of Shuaiba and a petrochemical complex in the port town which was operated by one of the Kuwaiti producer EQUATE which is an international joint venture between Petrochemical Industries Company (PIC), The Dow Chemical Company (Dow), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC).

Furthermore, due to power outage at the petrochemical complex which had a production of Ethylene, Polypropylene, Ethylene Glycol, Styrene Monomer, Benzene and Paraxylene and also operations of three oil refineries which have a combined output of 930,000 barrels/day located in Mina Ahmadi, Mina Abdullah and Shuaiba at Kuwait were all disrupted. However to upgrade the petrochemical and crude oil capacity, Kuwait pushes on to improve the infrastructure.

By the year 2015, EQUATE will be taking a glance on increasing its PE capacity from its current production capacity of 825,000 mt/year through a debottlenecking process at its plant. Moreover according to the industry experts, the country has nearly production capacity of 3.4 million tons/year of basic chemical and meanwhile the output of crude oil has been estimated to rise in the year 2018, once the construction of a new refinery of 615,000 barrels/day in the district of Al-Zour gets completed.

Furthermore for most of the foreign industries, Kuwait is an undeveloped giant and for multinationals the imperative infrastructure and immense oil wealth apparently needs to make it an attractive prospect, however the country mostly depends on the efforts to drive economic reform bearing fruit. Additionally amid Iran and the Gulf Arab states which includes the main power Saudi Arabia, Kuwait is seen by few as a budding bridge.

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