Petrochemicals to power Kuwait’s energy transition

Kuwait

Nadia Bader Alhajji, CEO of Petrochemical Industries Company (PIC), talks to The Energy Year about the fundamental role that petrochemicals play in the consecution of energy transition goals. PIC is a KPC subsidiary that manufactures and markets petrochemicals and fertilisers in Kuwait and internationally.

What role do petrochemicals play within the broader dynamics of the oil and gas sector?
Petrochemicals are the final stage of oil processing. They are the products that serve as building blocks for goods used daily such as plastics, polymers, synthetic rubbers, solvents, adhesives, detergents and more.
The petrochemicals sector contributes significantly to the overall economic value generated by the oil and gas industry. It represents a substantial portion of the downstream segment’s revenue stream and provides employment opportunities across various skill levels. Global demand for petrochemicals and everyday products are factors for determining the processing parameters of crude oil.
In short, petrochemicals are integral to the oil and gas sector, contributing to both its upstream and downstream operations, playing a significant role in the global economy and providing opportunities for diversification and growth for companies within the industry.

What major trends are you seeing in the petrochemicals sector?
The global oil and gas industry is experiencing a major shift. In the past decades, the focus was on fuels and products derived directly from refining crude oil. More recently, it has moved to renewables and clean fuels. The global petrochemicals sector is shifting towards green petrochemicals that are more environmentally friendly and help achieve energy transition.
Unfortunately, however, the industry is struggling to properly communicate to the general public the importance of its products for this transition. There are deep misconceptions about petrochemicals. The general public thinks the production of plastics is the reason why seas are polluted, rather than the way plastic waste is managed. They don’t realise that, without petrochemicals, we wouldn’t have many products that are crucial for the shift to renewables.

How important are petrochemicals for the energy transition and what steps can the segment take to reduce its impact on the environment?
Petrochemicals play a complex role in the energy transition, both as a contributor to greenhouse gas (GHG) emissions and as a potential enabler of sustainable alternatives. Petrochemicals are part of the fabric of our societies, and our economies rely heavily on them. Petrochemical production processes are energy-intensive and often rely on fossil fuels as feedstock, and plastics production generates GHG emissions.
By adopting energy transition concepts and policies, the amounts of GHG emissions released and thus the impact on the environment are minimised. These include investments in alternative feedstocks for petrochemical production, such as biomass, agricultural residues and waste streams. In addition, energy-efficient technologies and practices are being implemented in petrochemical manufacturing processes to minimise energy consumption and carbon emissions.
Sustainability can also be achieved through investments in CCS technologies that secure carbon dioxide emissions from petrochemical plants and by embracing circular economy principles to reduce waste and promote the reuse and recycling of petrochemical-derived products.

What steps is PIC taking to support the downstream segment in Kuwait and abroad?
As the petrochemical arm of Kuwait, PIC not only operates assets in Kuwait but also has multiple global investments through joint ventures. Through the years, we have conducted studies and carried out initiatives to help the private sector build on the products that we produce, taking into consideration economies of scale and the size of local markets.

How does the company approach the deployment of new technologies?
Like many other petrochemical companies, we are looking at technologies that can help us achieve our energy transition and decarbonisation goals. These are not new challenges; we have been addressing them for a long time. Over the years, our plants have been implementing technologies and we have been successful in reducing our environmental footprint and our emissions by implementing PV systems and launching our circular economy strategy.
We are also focused on digital transformation, which isn’t just about embracing the latest technologies but also about operational excellence. We have integrated new digital solutions into our various roles to enhance our productivity and profitability.

What are the key elements of your growth strategy and your main targets for the future?
PIC seeks growth throughout its portfolio of petrochemical plants in Kuwait, and we are also investing in acquisitions and grassroots projects inside and outside of the country. We aim to invest in C2 and C3 core chemicals, ethylene and acetylene, and also in derivative products in alignment with our 2040 strategy.
Our main focus, however, is the development of our young talent, both women and men, and continuing to provide them with the right environment to help foster creativity and innovation. New generations will play a key role in addressing some of the most difficult challenges our industry has faced in a long time.

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