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Saturday, November 28 - 2009

Borouge awards two major EPC contracts for Borouge 2 expansion project

  • United Arab Emirates: Saturday, April 14 - 2007 at 13:32
  • PRESS RELEASE

Borouge, a Joint Venture between ADNOC (Abu Dhabi National Oil Company) and Borealis, the leading provider of innovative plastics solutions, today awarded two EPC Contracts for its Borouge 2 major expansion project at its production facilities at Ruwais Abu Dhabi, U.A.E.

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The EPC Contract for constructing three new Borstar Technology Polyolefins units has been awarded to M/S Tecnimont S.p.A. Italy on Lump Sum Turn Key (LSTK) basis for approximately US$1,855 Million*(One Billion, Eight Hundred and Fifty Five Million Dollars). The project will be managed from Tecnimont's office in Milan, Italy and is scheduled for completion in 38 months including Pre-commissioning. This contract will lead to development of two new Borstar Polypropylene (PP) Plants with annual capacity of 800,000 tonnes and a new Borstar Enhanced Polyethelene (PE) plant with annual capacity of 540,000 tonnes which will compliment the existing 600,000 tonnes PE unit.

The Contract for Utilities and Offsites has been awarded to M/S Technicas Reunidas(TR), Spain on Convertible Lump Sum (C-LSTK) basis. It has an estimated final Agreement price of US$1,234 Million (One Billion, Two Hundred and Thirty Four Million Dollars). This project will be managed from TR's office in Madrid, Spain and is scheduled for completion in 34 months including successful Test Runs. This plant will supply the utilities to all the associated packages.

Borouge has already awarded a Lump Sum Turn Key US$ 1.3 billion EPC Agreement to M/S Linde Engineering, Germany in December 2006 for construction of a new Ethylene Cracker. This contract was awarded on LSTK basis. The initial activities are already underway and it is scheduled for completion on the year 2010 as the case for all packages.

Borouge Project Management Team will manage the execution of Borouge 2 Expansion Project Packages with support of M/S Foster Wheeler as Project Management Consultant (PMC).

• This number is to be adjusted on the day of award based on the Euro/US exchange rate agreed mechanism.
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Notes and media contacts

For further information please contact:
Borouge:
Marnie Woodd,

APCO Industria UAE:
Bassam Fakih,

About Borouge and Borealis
Borouge and Borealis are leading providers of innovative, value creating plastics solutions. With more than 40 years of experience in polyolefins and using our unique Borstar® technology, we focus on the infrastructure, automotive and advanced packaging markets across Europe, the Middle East and Asia. Our production facilities, innovation centres and service centres work with customers in more than 170 countries to provide materials that make an essential contribution to society and sustainable development. We are committed to the principles of Responsible Care® and to leading the way in 'Shaping the Future with Plastics'™.

Borouge is a joint venture established in 1998 between the Abu Dhabi National Oil Company and Borealis. It is currently implementing a multi billion dollar expansion at its world-scale, state-of-the-art production facility in Ruwais, Abu Dhabi in the United Arab Emirates. The project, called Borouge 2, is due for completion in 2010 and will triple the company's polyolefin production capacity.

About Borstar®
Borstar technology is a critical element in developing the next generation of innovative, creative plastics. Borstar is Borealis' proprietary technology that supports differentiated PE and PP products. It enables production of tailored plastic grades that reduce costs through efficient processability. Other benefits include short start-up times, quick transitions among grades and the capacity to produce a whole range of product mix in one cycle. Borouge's cracker and Borstar PE units consistently achieve first-time-right products with minimal downtime.

Now, Borstar PE 2G, Borealis' next generation technology, represents a leap forward in polymer design - from bi-modal PE to multi-modal PE-facilitating the development of an ever-widening range of new plastics which outperform alternative materials in meeting the needs of manufacturers and end users. By enabling a tailored molecular structure of PE to precisely match the application requirements, Borstar PE 2G extends the product range with more sophisticated, customer-oriented solutions characterised by an outstanding combination of mechanical properties and excellent processability.

Borstar is Borealis' proprietary technology supporting differentiated polyethylene and polypropylene products and is a registered trademark of Borealis A/S.

For more information on Borealis and Borouge, visit www.borouge.com and www.borealisgroup.com.

For more information about Tecnimont and Tecnicas Reunidas, visit www.tecnimont.it and www.tecnicasreunidas.ae

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