Company News

Borouge busy awarding contracts for various projects
In line with increasing capacity at its Ruwais plant, Borouge has awarded three major contracts valued at US$2.6 billion to a South Korean consortium, after awarding a US$1.075 billion contract to Linde for the construction of a 1.5 million tonnes/year ethane cracker. It has also awarded the contract worth AED260 million for the construction of its Innovation Centre in UAE to Associated Construction and Investments Company.

The above investments will expand the production capacity of its Ruwais plant to 4.5 million tonnes/year by 2013, making it the largest integrated polyolefins site in the world.

A contract worth US$1,255 billion for the construction of two Borstar enhanced PE and PP units, as well as a contract worth US$400 million for the construction of a 350,000 tonnes/year low density polyethylene LDPE unit, was awarded to the joint venture consortium Tecnimont of Italy and Samsung Engineering of South Korea, on a lump sum turnkey basis. The annual capacity of the PE units is 1,080,000 tonnes/year and the PP units, 960,000 tonnes/year.

In addition, a contract worth US$935 million for the utilities and off-site facilities for the expanded plant was awarded to Hyundai Engineering and Construction of South Korea.

Borouge has already awarded a US$1.075 billion contract to Linde Engineering for the construction of the Borouge 3 ethane cracker and the site preparation is being executed by Al Asab General Transportations and Contracting Establishment.

The new cracker, the third of its kind to be built by the Linde Group for Borouge in one decade, complements the existing 600,000 tonnes/year and planned 1.5 million tonnes/year ethane crackers at the plant. After completion of the new cracker, Borouge will have the world’s largest ethane cracker complex, setting a new benchmark for the industry.

The new Innovation Centre, planned for completion by the end of 2011, will house more than 50 international researchers and engineers focusing on developing plastics solutions for the pipe, automotive and advanced packaging industries. The Centre itself will cover approximately 18,000 sq m and the contract includes construction of a training centre for the Gulf Plastic Pipes Academy (GPPA).

The technical centre will work together with other centres of Borealis in Europe and collaborate with local and international educational institutions such as the Petroleum Institute in Abu Dhabi to further develop the competence of polymer sciences in the UAE.

Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis.