Ashurst advises PIC on marketing agreement with Canada Kuwait Petrochemical Corporation

Ashurst advised Petrochemical Industries Company K.S.C. (‘PIC’) on a definitive agreement with Canada Kuwait Petrochemical Corporation (‘CKPC’) to be the marketing agent for CKPC’s proposed 550 thousand metric ton per year polypropylene (PP) production facility in Sturgeon County, Alberta, Canada (the ‘Project’). CKPC is a joint venture between PIC and Pembina Pipeline Corporation. Construction of the Project remains subject to a positive final investment decision from CKPC’s shareholders, which is expected after front-end engineering and design activities are completed later this year.

This agreement provides PIC the right to market for sale future PP production from the Project. PIC will market CKPC’s full slate of homopolymer, random and impact copolymers globally, with a focus on the North American market.

The Ashurst team was led by oil and gas partner Renad Younes, assisted by counsel Trinh Chubbock and associate Johanna Armstrong.

Commenting on the transaction, Renad said, “We are delighted to have supported PIC in reaching this stage of what is a very significant project in the Canadian petrochemicals sector, and which will enable PIC to expand and consolidate in North American markets in particular.  It has been a pleasure to have worked with the PIC team and the manager of legal affairs Hessa Altwaijri once again, assisting them in reaching this milestone.”