CORRECTED - UPDATE 2-Dow says $19 bln Kuwait petchem jv on track

(Corrects spelling of Rohm and Haas in paragraph 9)

(Recasts with Dow spokesman response, adds background)

NEW YORK/KUWAIT, Nov 26 (Reuters) - U.S. firm Dow Chemical (DOW.N) said on Wednesday it was on track to close a deal this year for a $19 billion petrochemicals venture after partner Kuwait Petroleum Corp was reported as saying it was under review.

The deal was part of Dow's strategy to reduce its exposure to the cyclical nature of commodity chemicals made from oil and gas through joint ventures with big energy producers.

"We remain on track to close the transaction by the end of the year," Dow spokesman Bob Plishka said.

Kuwait state news agency KUNA earlier quoted KPC Chief Executive Saad al-Shuwaib as saying the deal was under review due to the global financial crisis.

KPC was in negotiations with Dow that would take into consideration the impact of the crisis on the petrochemicals industry, Shuwaib told KUNA. He declined to give the agency further details.

KPC officials were not available to comment.

Dow Chemical and a unit of KPC agreed to form the joint venture in December. Under the deal, KPC's Petrochemicals Industries Co had agreed to pay Dow $9.5 billion for a 50 percent stake in the planned firm.

Cash from the joint venture deal were to fund acquisitions in the specialty chemicals sector.

In July, Dow said it would acquire its rival Rohm and Haas Co ROH.N for $15.3 billion in a move to broaden its specialty product offerings.

The Kuwait venture, K-Dow Petrochemicals, was to consist of five former Dow units, to manufacture and sell chemicals used in products such as plastic bottles, compact disks and computers.

The joint venture would give Dow access to OPEC member Kuwait's crude supplies, easing its costs for the commodity.

Dow said earlier this month it was likely to announce a restructuring of operations before the end of the year to deal with a steep decline in demand and a looming global recession. (Reporting by Euan Rocha in New York and Simon Webb in Dubai; additional reporting by Ulf Laessing in Kuwait)