Petrochemicals

EQUATE Petrochemical Co. (EQUATE)

The EQUATE Group includes EQUATE Petrochemical Company (EQUATE), The Kuwait Olefins Company (TKOC), as well as a number of subsidiaries such as MEGlobal and Equipolymers. Their products are marketed throughout Asia, the Americas, Europe, the Middle East and Africa.

The EQUATE Group is a global producer of petrochemicals and the world’s second largest producer of ethylene glycol (EG). The Group owns and operates industrial complexes in Kuwait, North America and Europe that annually produce over 6 million tons of ethylene, EG, polyethylene (PE), polyethylene terephthalate (PET), styrene monomer (SM), paraxylene (PX), heavy aromatics (HA) and benzene (BZ). Employing more than 1,500 people worldwide, the EQUATE Group is a leading enterprise that pursues sustainability wherever it operates through partnerships in fields that include the environment, economy and society.

EQUATE story begun when it was established in 1995 as Kuwait’s first international petrochemical joint venture (JV) and a global producer of petrochemicals providing reliable services and solutions, enabling global customers and stakeholders to grow and attain the success they seek.

In 2004, TKOC was established as the second international petrochemical JV after, with the exact same shareholders of EQUATE. TKOC was built to continue EQUATE’s success in developing the presence of Kuwait’s petrochemical industry around the world. TKOC is currently managed and operated under the umbrella of the EQUATE Group and commenced production in August 2008.

In 2015, EQUATE acquired MEGlobal, a world leader in the manufacture and marketing of monoethylene glycol (MEG) and diethylene glycol (DEG) for a total consideration of US$ 3.2 billion. Further to the acquisition, EQUATE became the world’s second largest producer of EG. The combined entity benefits from significant economies of scale with a larger and more diversified distribution platform through Kuwait, Germany, Canada, and the United States. IT also provides an optimized cost structure with multiple points of access to feedstock from sources in North America and the Middle East with improved operational efficiency.

In 2016, EQUATE Group reached another milestone by being the first Kuwait-headquartered petrochemical entity to establish an industrial complex in the USA and the first Middle East-based organization to benefit from USA shale gas sources. Located in Freeport, Texas, the new facility – to be completed during 2019 – will increase EQUATE’s EG capacity by 750,000 metric tons annually (MTA) and enhance EQUATE’s global presence to meet customer needs. EQUATE also became the first Kuwait-based company to issue 144A transaction bonds that are tradable in the USA at a value of $2.25 billion. The bond issuance was considered the largest ever in Kuwait’s history and the Arabian Gulf’s largest bond issuance since 2014. This is following EQUATE’s securing ?investment grade ratings by S&P (BBB+) and Moody’s (Baa2), two of the largest independent rating agencies.

EQUATE is also making a significant economic contribution to the Kuwaiti economy and the global petrochemical industry. Ethylene-based products from EQUATE now account for over 60% of Kuwait’s export value from non-oil sources. By spending over $2 billion annually in several fields, EQUATE also plays a positive role in local and global business sectors. Since commencing its operations in 1997, EQUATE has contributed significantly to the growth of the Kuwaiti plastics industry by over 450%.

Main Products

  • Polyethylene (PE)

A basic petrochemical substance used to manufacture packaging materials, bags, containers, pipes and children toys. EQUATE’s PE product portfolio includes LLDPE C4 Film, LLDPE C6, HDPE film, and HDPE blow molding grades. It’s shatter-free and safety features make it an ideal choice for kitchenware, which offers a practical alternative to glass and ceramic dishes. Its moisture resistance and extended shelf-life advantages make it critical for food preservation and perishables’ freshness when used to store food and beverages. Its child-proof and chemical resistance make it the best solution for plastic containers holding hazardous household products such as bleach, ammonia and other powerful cleaners. Its ability to withstand rigors of shipping and durability make it the number one choice for packaging and plastic containers, which provide good storage solutions at home and in the office.

PE uses & application in Flexible & Food Packaging/Containers, Industrial Piping, Agriculture Film, Household & Industrial Cleaning (HIC).

  • Ethylene Glycol (EG)

Ethylene glycol is a chemical commonly used in many commercial and industrial applications including antifreeze and coolant. EG helps keep your car’s engine from freezing in the winter and acts as a coolant to reduce overheating in the summer. Other important uses of EG include heat transfer fluids used as industrial coolants for gas compressors, heating, ventilating, and air-conditioning systems, and ice skating rinks. Ethylene glycol also
is used as a raw material in the production of a wide range of products including polyester fibers for clothes, upholstery, carpet and pillows, well as polyethylene terephthalate (PET) resin used in packaging film and bottles. Many of these products are energy saving and cost efficient as well as recyclable.

Industrial Complexes: Canada, Germany, Kuwait & USA

Offices: Brazil, Canada, China, Germany, Italy, Kuwait, Mexico, Singapore, UAE & USA

Production Capacities (MTA)

  Capacities      
Product EQUATE TKOC MEGlobal Total
Ethylene 850,000 850,000 - 1.7 million
Polyethylene 1 million - - 1 million
Ethylene Glycol 550,000 600,000 2.1* million 3.24 million

*Includes 750 KMT that is still under construction

Kuwait Aromatics Co. (KARO)

KARO was established in 2004 as a Kuwaiti Shareholding Company with a paid-up capital of KD 250 million, as the first public private joint venture in a world class petrochemical complex between Kuwait Petroleum Corporation (KPC) subsidiaries and QPIC.

Kuwait Aromatics Company (KARO) owns two main investments:
Kuwait Paraxylene Production Company (KPPC)

KPPC was established in 2006 as a shareholding company with an authorized capital of KD 250 million. The company commenced its commercial production in 2010, buys its feedstock (Naphtha) from KNPC, and produces Paraxylene, Benzene, and Heavy Aromatics to be exported to selected international markets. KPPC provides The Kuwait Styrene Company (TKSC) with Benzene, the main feedstock to manufacture Styrene Monomer, while other production derivatives are redirected back to KNPC.

KPPC Main Products

  • Paraxylene
    Paraxylene is the main ingredient to manufacture polyethylene terephthalate (PET) polyesters, which is a kind of plastic used in bottles. Other PET uses include: containers for toiletries, cosmetics and other consumer products; fabrics for curtains, upholstery, and clothing; films for x-rays, magnetic tapes, photographic film and electrical insulation; and packaging for boil-in bags, processed meats, shrink films and blister packs.
  • Benzene
    Benzene is primarily used as a feedstock, or raw material, to make other industrial chemicals, such as ethylbenzene, cumene and cyclohexane. Benzene is also used as a solvent in the chemical and pharmaceutical industries. Benzene is used to make other chemicals that are used to manufacture of a variety of materials and plastics such as polystyrene, and nylon.

Production Capacities (KMT)

Product Capacity
Benzene (BZ) 393
Paraxylene (PX) 829

 

The Kuwait Styrene Company (TKSC)
TKSC is the first of its kind and is the sole manufacturer of “Styrene Monomer” in the State of Kuwait. TKSC was founded in 2004 with a capital of US$140 million. TKSC started its commercial production in 2009. TKSC is supported by its geographical diversification and exposure along various countries in the Middle East, Africa, Asia and Europe despite of its young age, enabled by its competitive advantage, being in the GCC region, in terms of operating costs, shipping and the use of advanced industrial technology.

TKSC Main Products

  • Styrene Monomer

A Petrochemical Substance that is used in manufacturing a variety of plastics such as electrical and electronic appliances, packaging material, insulation, automotive parts and much more, with majority of manufacturers convert it into Polystyrene. Polystyrene is a versatile plastic used to make a wide variety of consumer products. As a hard, solid plastic, it is often used in products that require clarity, such as food packaging and laboratory ware. When combined with various colorants, additives or other plastics, polystyrene is used to make appliances, electronics, automobile parts, toys, gardening pots and equipment and more.

Production Capacities (KMT)

Product Capacity
Styrene Monomer (SM) 450