A Kuwaiti authority has picked a US-headquartered designer for an upcoming manufacturing plant in Canada.Â
Petrochemical Industries Company (PIC) signed an initial agreement for the polypropylene project.Â
READ:Â Kuwait mulls investment in Canada petrochem sector
The agreement was signed through the Canada Kuwait Petrochemical Corporation.Â
Jacobs Engineering Company, a US-headquartered company, will work on the project’s initial design.Â
PIC’s chief executive officer, Mohammed Al-Farhoud, said Jacobs would also provide an initial cost assessment for the project by Q4 2018.Â
Upon completion, the facility is expected to have a production capacity of approximately 500,000 tonnes (550,000 tons).Â
Last December, the Canada Kuwait Petrochemical Corporation received a conditional royalty credit of $300m (KWD90.8m) from Alberta Energy to work on the project.
Al-Farhoud said the Canadian project was “one of the major endeavours [being] carried out” by PIC outside Kuwait, and would “bolster Kuwait’s status within the global petrochemical industry”.Â
PIC announced its intention to build in Canada last April.Â
READ:Â Kuwaiti petrochem firm enters plastic recycling partnership
At the time, PIC and Canada’s Pembina Pipeline Corporation announced they would jointly develop a feasibility study for a petrochemical facility in the latter’s Alberta province.Â
PIC and Pembina aimed to study the potential to develop a propane de-hydrogenation (PDH) and polypropylene (PP) plant in Canada. Â