The Kuwaiti Ministry of Commerce and Industry (MCI) approved a request from Kuwait Petroleum Corporation (KPC) to set a subsidiary under the name Kuwait Integrated Petrochemical Industries Company (KIPIC) with an estimated capital of about $5.94b, reported Kuwait Times.

The newly founded company, what would become the largest oil company in Kuwait, is expected to run refining and petrochemical projects. KIPIC will play a pivotal role in running the Az-Zour complex, which serves to process petrochemicals and is a liquefied natural gas (LNG) importing facility, according to Oil Price.

Kuwaiti Mina Al-Ahmadi Refinery’s CEO, Ahmed Al Jeemaz, said that the company’s production capacity will be up to about 615,000b/d, making it one of the largest refineries in the region. He added that 40% of its production will be dedicated to the power stations of the low-sulfur fuel.

Reports indicate that KPC might place half of the KIPIC’s new shares on the Kuwait Stock Exchange. This has yet to be confirmed by the Kuwaiti government or KPC officials.