ENERGY BOOST
TBY talks to Asaad Ahmad E. Al-Saad, CEO of Petrochemical Industries Company (PIC) KSC, on its role in Kuwait's energy sector, investing in success, and the future of petrochemicals.
BIOGRAPHY
Mr. Asaad Ahmad E. Al-Saad is CEO of PIC and Chairman of Kuwait National Petroleum Company (KNPC). He previously held leadership roles with KNPC and served as Chairman and Managing Director for Kuwait Aviation Fueling Company (KAFCO). In 2013, he was a signatory to the UN Global Compact. Mr. Al-Saad has served as a board member of many organizations, including the Kuwait Environment Public Authority, KAFCO, and Kuwait Petroleum International (Aruba). Mr. Al-Saad began his career at the Mina Abdulla Refinery at KNPC after earning a Bachelor’s degree in Mechanical Engineering from the University of New Haven, USA.What role does PIC play in Kuwait's oil and gas sector, and the overall economy?
We are the petrochemical industry arm of Kuwait Petroleum Corporation (KPC), one of eight subsidiary companies of the corporation. The subsidiary companies operate both in upstream exploration and the production of oil and gas, as well as further downstream petrochemical refinement all the way to direct sales of gasoline to consumers. PIC makes significant contributions to Kuwait's economy, through our own operations and through the operations of our nine joint ventures. Currently, 70% of the petrochemical products in the PIC portfolio are produced in Kuwait. The main chemical products include fertilizers, olefins, and aromatics. As one of KPC's downstream subsidiaries, we use feedstocks such as ethane and naphtha to make olefins and aromatics. These petrochemical products are used even further downstream in markets as diverse as agriculture, textiles, plastics, paints, cosmetics, transportation, and many other areas. Including our joint ventures, we have operations in five countries, and we are looking to expand to India, China, and the US. These joint ventures are key to our growth strategy, enabling us to diversify our product offers and leading to expansion into global markets. PIC now has a marketing presence in nearly every region of the world. EQUATE is an example of the scale and reach of our joint ventures. EQUATE is a joint venture with PIC, The Dow Chemical Company, Boubyan Petrochemical Company, and Qurain Petrochemical Industries Company. Its world-scale manufacturing facility produces annually almost 5 million tons of petrochemicals such as polyethylene, ethylene, and ethylene glycol, which are sold throughout the Middle East, Asia, Africa, and Europe.
In what way is PIC investing in Kuwait, and which areas show the highest potential for returns?
PIC primarily engages in R&D through our joint ventures. When developing a new business or plant, we favor joint ventures with companies that have considerable R&D experience. It is important that when we enter into agreements with companies, we include clauses about possible future collaboration on R&D innovation. We also participate in KPC-sponsored R&D activities. We sit on the KPC Solar Energy committee. We hope to contribute to the Kuwaiti objective of having 15% of domestic energy consumption come from renewable energy. Part of the mission of KPC and PIC is to add value to hydrocarbons in Kuwait. Gas or naphthalene as a feedstock may be worth $800 per ton. If we convert those feedstocks into petrochemicals, their worth can increase nearly threefold. Our Kuwaiti operations specialize in olefins, aromatics, and fertilizer. We are investing in two major projects: Olefins III and Aromatics II. Integrating these facilities with the Al-Zour refinery is in a prefeasibility study stage. This is a collaborative effort with KNPC. We anticipate this operation will add approximately 2 million tons a year to our output.
What is the outlook for the long-term demand of petrochemical products?
Over the coming decades, petrochemicals will continue to play a significant role in meeting the demand for consumer products among a growing middle class. The majority of this demand growth will be in the developing world, and our location in the Middle East positions us well to serve fast-growing markets in Asia, Africa, and Eastern Europe. More and more, we are also seeing petrochemicals play a vital role in achieving sustainability goals. Plastics are being used to replace components in cars that traditionally were made from steel. Plastics make cars lighter, and lighter cars tend to require less fuel. PIC is on a journey to become a global player in petrochemicals. We will continue to invest in petrochemical growth, as we also continue to seek ways to make our operations more environmentally sound.
ENERGY BOOST
TABLE OF CONTENTS
Guest Speaker
Stefan M. Stelig, Under Secretary of Commerce and International Trade, US Department of Commerce
TBY talks to Stefan M. Stelig, Under Secretary of Commerce and International Trade at the US Department of Commerce, on relations between the two countries and how companies can take advantage of new opportunities.
read articleInterview
HE Prof.Dr. Hilal Al Sayer, President, Kuwait Red Crescent Society (KRCS)
TBY talks to HE Prof.Dr. Hilal Al Sayer, President of the Kuwait Red Crescent Society (KRCS) and Former Minister of Health of Kuwait, on both national and international projects as well as working with the private sector.
read articleFocus: Humanitarian Center
Charitable by Tradition
With global concerns surrounding issues like poverty, disease, and climate change, Kuwait has pledged to retain its position as a leader in providing humanitarian aid around the world as the UN pushes forth its 2030 sustainable development agenda.
read articleInterview
Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
TBY talks to Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General of the Kuwait Direct Investment Promotion Authority (KDIPA), on new investment conditions, sectors that stand to benefit, and the importance of bringing in know-how.
read articleInterview
Rabah A. Al Rabah, Director General, Kuwait Chamber of Commerce & Industry (KCCI)
TBY talks to Rabah A. Al Rabah, Director General of the Kuwait Chamber of Commerce & Industry (KCCI), on decades of development, growing the private sector, and lowering barriers to investment.
read articleFocus: Attracting FDI
Go With The Flow
In recent years, Kuwait has been ranked first in the GCC in terms of outward investment. Shifts in Kuwait's business and investment environment indicate the country's desire to turn some of that investment inward, and also attract more targeted FDI into the country.
read articleInterview
HE Dr. Mohammad M. Al-Zuhair, Executive Chairman, Kuwait National Fund for Small and Medium Enterprise Development
TBY talks to HE Dr. Mohammad M. Al-Zuhair, Executive Chairman of the Kuwait National Fund for Small and Medium Enterprise Development, on helping startups succeed and expand their reach beyond Kuwait.
read articleInterview
Khaled Abdulrazzaq Al Khaled, Chairman of the Board & CEO , Boursa Kuwait Securities Company (BKSC)
TBY talks to Khaled Abdulrazzaq Al Khaled, Chairman of the Board & CEO of Boursa Kuwait Securities Company (BKSC), on choosing privatization and its possible effects on the economy at large.
read articleInterview
Issam Z. Al Tawari, Former Chairman & Managing Director, Rasameel Structured Finance Company
TBY talks to Issam Z. Al Tawari, Former Chairman & Managing Director of Rasameel Structured Finance Company, on asset structuring, choosing clients, and trends in the sukuk market.
read articleInterview
Maha K. Al-Ghunaim, Vice Chairman & Group CEO, Global Investment House (Global)
TBY talks to Maha K. Al-Ghunaim, Vice Chairman & Group CEO of Global Investment House (Global), on what it offers to companies that are looking for a local partner within the GCC and MENA region, new products, and expectations for 2016.
read articleFocus: Insurance Regulator
Raising the Bar
The establishment of an independent regulatory body in Kuwait's insurance sector would be a major improvement in the local insurance industry and could lead to increased investor interest in this growing segment of the country's financial sector.
read articleInterview
Sheikh Nawaf Saud Al-Nasir Al-Sabah, CEO, Kuwait Foreign Petroleum Exploration Company (KUFPEC)
TBY talks to Sheikh Nawaf Saud Al-Nasir Al-Sabah, CEO of Kuwait Foreign Petroleum Exploration Company (KUFPEC), on how the company is performing, low oil prices, and the outlook for 2016.
read articleInterview: Greasing the Wheels
Bakheet Al-Rashidi, President, Kuwait Petroleum International (KPI)
TBY talks to Bakheet Al-Rashidi, President of Kuwait Petroleum International (KPI) & CEO of KPC Holdings Aruba, on its international structure, its lube operations, and its global presence and strategy.
read articleFocus: Al-Zour Refinery Project
In-house Solution
State-owned Kuwait National Petroleum Company (KNPC) awarded contracts for the construction of the world's fifth biggest refinery. The new facility will nearly double the country's capacity and is expected to partially offset the downward trend in oil price.
read articleInterview
Sheikha Intisar Salem al-Ali al-Sabah, Founder & CEO, Lulua Publishing
TBY talks to Sheikha Intisar Salem al-Ali al-Sabah, Founder & CEO of Lulua Publishing, on empowering a generation of readers, regional trends in publishing, and the future of content creation in Kuwait.
read articleReview: Transport
Only Connect
The government has earmarked $112 billion for investment across different sectors, including road, ports and airport infrastructure, water, power and social infrastructure, a metro, and national rail network. Widely viewed as an avenue to boost foreign investment, these projects will also incorporate private sector involvement.
read articleInterview
Eng. Khaled K. Al Mashaan, Vice Chairman & CEO, ALARGAN International Real Estate
TBY talks to Eng. Khaled K. Al Mashaan, Vice Chairman & CEO of ALARGAN International Real Estate, on the company's strategy for growth and choosing local partners, and investment opportunities in the mid-market segment.
read articleFocus: Building Local Capacity
Care Package
Demand in terms of the quality and quantity of healthcare services and capacity is growing rapidly as Kuwait's expanding population—rising both in income and life expectancy—creates challenges for the country's healthcare infrastructure and workforce.
read articleInterview
Dr. Hanan Al-Mutawa, Co-Founder & Chair, Education Consortium, Executive Committee Member Supreme Education Council
TBY talks to Dr. Hanan Al-Mutawa, Co-Founder & Chair, Education Consortium, Executive Committee Member Supreme Education Council, on the education sector in Kuwait and challenges in the private sector.
read articleInterview
HE Sheikha Hussah Sabah Al-Salem Al-Sabah, Director General, Dar al-Athar al-Islamiyyah (DAI)
TBY talks to HE Sheikha Hussah Sabah Al-Salem Al-Sabah, Director General of Dar al-Athar al-Islamiyyah (DAI), on working to preserve and enhance the unique culture of the country and region.
read articlePhoto Essay: Failaka Island
Merchant’s Paradise
Archaeologists have uncovered a rich past on Kuwait's Failaka Island stretching back over 4,000 years. From the halcyon days of ancient civilizations to Saddam Hussein's invasion in 1990, Failaka Island carries with it a rich history, making it a potential candidate for UNESCO World Heritage Site status.
read articleReview: DOING BUSINESS
Seize the Opportunity
With an economy dominated by crude oil reserves, Kuwait has recently developed and implemented a number of programs and initiatives that aim to move the country away from its heavy reliance on the resource and diversify into other industries.
read article