Borouge updates on multi-billion dollar expansion plans
Borouge has outlined progress towards awarding engineering,
procurement and construction (EPC) contracts for the
multi-billion dollar expansion of its production facilities
in Ruwais, Abu Dhabi.
The company also announced that it has this week initiated
the tender process for distribution and storage hubs in the
Middle East, North East Asia and South East Asia and the
provision of global shipping between all hubs. These hub
operations will be implemented in phases beginning in 2007
and will bring Borouge closer to its markets and offer
improved service to customers.
As one of the world’s largest plastics projects, Borouge 2 is a key
part of Borouge’s strategy for growth, tripling its production
capacity and consolidating its position in markets throughout the
Middle East, Asia-Pacific and Africa.
The Borouge 2 project comprises an ethane cracker that will produce
1.4 million tonnes of ethylene per annum and the world’s biggest
olefins conversion unit, producing 752 kilotonnes per annum. Its two
Borstar polypropylene plants will have a combined annual capacity of
800 kt while the Borstar Enhanced PE plant will have an annual
capacity of 540 kt. The new project will be located next to
Borouge’s existing petrochemical complex in Ruwais.
invited expressions of interest for: a distribution and storage
operations hub in South-East Asia; a distribution and storage
operations hub in the UAE; two distribution and storage operations
hubs in North-East Asia; container and product handling in Ruwais,
UAE; and for global shipping between hubs in the Middle East, North
East Asia and South East Asia including ports of destination.
Hubert Puchner, Chief Executive, Borouge Pte Ltd commented:
“Together, these facilities will put in place the integrated,
flexible and competitive supply chain needed to support Borouge’s
expanded market positions and broader product portfolio.”
For the proposed Ethylene Cracker Package of the Borouge 2 project,
technical evaluation was completed and three bidders - Linde; Shaw
Group; and Snamprogetti - have been invited to submit prices by
October 30, 2006.
For the Utilities and Offsite Package, invitations to bidders to
provide utilities and offsite facilities have been sent to the
market with technical bids due in the second half of November 2006.
With regard to the Polyolefin Units Package, technical bids have
been received and are under evaluation for the two Borstar
technology polypropylene units and the Borstar polyethylene unit.
For the Olefins conversion unit Package of Borouge 2, after
soliciting market interest, Borouge has commenced the
prequalification process with selected potential bidders.
Harri Bucht, Chief Executive Officer, Abu Dhabi Polymers Company (Borouge)
added: “Borouge 2 is a major step for Borouge. It’s not just a new
phase for the company but for the Abu Dhabi economy as a whole.
While it will increase our capacity to serve growing markets in the
Middle East and Asia Pacific, we also expect it to be a driver for
the growth of local downstream industries.”
John Webster, Group Communications Manager
Tel: +65 63 11 42 66
Orient Planet PR & Marketing Communications
Tel: +971 4 3988901
Fax: +971 4 3988941