A feasibility study carried out by the UK-based Wood Mackenzie Company for a giant petrochemical complex in Kuwait will be completed in September, a newspaper in the OPEC member reported on Wednesday.

The study will pave the way for the approval of the much-delayed project, which is expected to cost $8-10 billion, the Arabic language daily Alrai said.

The project near the $16-billion Alzour oil refinery in South Kuwait has been on the cards for many years but was delayed for technical and other reasons, the paper said.

The government-owned Kuwait Integrated Petroleum Industries Company (KIPIC) will manage the complex, which is facing financial challenges including high costs.

“The project costs have sharply increased over the past years because of the surge in transport costs and the prices of building materials, mainly steel,” the paper said.

“another obstacle facing the project is finding a strategy partner who could provide part of the funds and other facilities,” it added, citing KIPIC sources.

The petrochemical complex has been in the pipeline for more than 8 years and is part of the Gulf emirate’s plans to develop its hydrocarbon downstream industry to diversify its oil-reliant economy.

KIPIC said in 2019 it has named Sumitomo Mitsui Banking Corporation (SMBC) of Japan as a financial advisor to arrange a 4.9 bln loan from global banks for the project.

KIPIC said it would fund 30 percent of the project while 70 percent would be raised through bank loans.

(Writing by Nadim Kawach; Editing by Anoop Menon)