Borouge 2 moves ahead with new contract awards

Borouge’s proposed major expansion ("Borouge 2") of its world scale petrochemical complex in Ruwais, Abu Dhabi (United Arab Emirates) has made further headway with the award of four contracts.

The work for the Front End Engineering Design (FEED) for an Olefins Conversion Unit (OCU) was awarded to ABB Lummus Global Inc. When completed, the OCU will be the world’s largest at 752 kta. This OCU FEED is expected to take approximately 32 weeks and will be executed by the ABB team in Houston (US). Work to start the FEED for the Polyolefin units was awarded to Fluor Mideast Ltd. The contract will be executed from Fluor’s offices in Haarlem (Holland) and Greenville (US), and is expected to take approximately 40 weeks.

A mandate was awarded to MWH to carry out the study of Health, Safety & Environment Impact Assessments (HSEIA) for the facilities and the lenders. The first phase is expected to be completed by September 2006. Finally, Maersk Logistics was selected as Borouge’s supply chain study consultant to advise on the supply chain concept for Borouge 2 products.

Borouge 2 is a multi-billion dollar project – one of the largest petrochemical projects in the Middle East – and will see the company expand its production capacity from its 2005 capacity of 600 kts to 2 million tonnes of enhanced Polyolefins per annum. The new capacity will comprise one 540 kts per annum Borstar® technology enhanced polyethylene unit and two 400 kts per year Borstar® polypropylene units.

The new expansion will be located next to Borouge’s existing petrochemical complex in Ruwais and is expected to be completed in 2010. The new capacity will be marketed mainly to the Middle East and Asia Pacific, targeting high end applications in the pipe and high performance packaging areas.

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