For petrochemical and industrial energy projects, the government (often through KPC) can supply natural gas and other hydrocarbon feedstock at preferential or below-market rates to encourage large-scale, value-added production in Kuwait.
Case-by-Case Negotiations: Investors establishing new downstream facilities (e.g., fertilizer, plastics, or other petrochemicals) can negotiate feedstock supply agreements. These are typically tailored to each project’s scope, technology transfer, and job creation.
Integration with Tax Incentives: When a foreign entity obtains an investment license from KDIPA for a manufacturing or value-added energy project, it may qualify for (a) corporate tax exemptions for up to 10 years, (b) customs duty exemptions on imports of machinery, and (c) 100% foreign ownership—all of which augment feedstock discounts.