PIC was established by an Amiri decree issued on 23rd July 1963. On 18th March 1964, Kuwait Chemical Fertilizer Company (KCFC) was established by PIC as a joint venture. The other partners in KCFC were B.P. and Gulf, each with a 20% holding. The first chemical fertilizer complex in Kuwait and the region was set up in Shuaiba Industrial Area, some 50 km. south of Kuwait City. It comprised 4 plants (for the production of ammonia, urea, ammonium sulfate and sulfate and sulfuric acid), the construction of which was completed in 1966.

In 1973, PIC bought the equity of B.P. and Gulf in KCFC. On 28th January 1975, KCFC was merged with PIC. The ownership of the Salt and Chlorine Plants in Shuwaikh Industrial Area had been transferred during 1974 from the Ministry of Electricity and Water to PIC. A ministerial resolution was issued on Jan 11th, 1976 transferring the ownership of all the private sector's equity in PIC to the state. Later on, Amiri decree No. 6 for the year 1980 was issued, establishing Kuwait Petroleum Corporation (KPC) and transferring PIC shares to it.

Over the years, PIC's plants were expanded and new plants were installed. In 1970, two plants for the production of liquid ammonia and two for urea production were added. With the installation of another new ammonia plant in 1984, the production capacity of PIC's ammonia and urea complex became the biggest in the middle east. PIC also operates a complex for the production of salt and chlorine in Shuaiba Industrial area. This is based on the latest technology and replaces plants formerly operated in Shuwaikh Industrial Area.

On June 28, 1989, PIC signed the licensing and basic engineering agreement for the Polypropylene Project with an annual production capacity of 100.000 tons.

The main contract tender for the Polypropylene Project was issued on 17.7.1994 to pre-qualified contractors, and the contract was signed in January 1995. The construction period was fixed at 29 months.

On June 19, 1993, the company signed a memorandum of understanding with Union Carbide Corporation for the construction of the Petrochemicals Complex at the Shuaiba Industrial Area. The project, which is one of the largest projects in the world at present, was onstream late 1997. It consists of units to produce 650.000 tons of ethylene and its deviative polyethylene and Ethylene Glycole annually.

On July 11, 1994, the Amiri Decree No. 138/94 was issued to amend and increase the capital of the company to KD 315 million, followed by another increase on year 2000 which increases the capital to 10400 million.

On July 15, 1995 the company signed the memorandum of association of Equate Petrochemicals Company with Union Carbide. Each company holds 45% of the capital and Bubyan Petrochemicals Co. holds 10% of the capital.

On July 16, 2001 Kuwait Petroleum Corporation board (KPC) in its resolution no. 19/2001 at the session no. 15/2001 approved the capital budget for the aromatics project.

On November 13, 2002 KPC board approved the capital budget for the Olefins II project in its resolution no. 62/2002.

The Board of Directors of KPC approved styrene project in April 2002 as part of the aromatics project. Its seperation from the aromatics project was also approved by the Board of Directors of KPC on December 31, 2003 in resolution no. 65/2004.

On June 1, 2004 The Dow chemical company and PIC announced the foundation of two new joint ventures. These two joint ventures are MEGlobal and Equipolymers.