Borouge inks EPC deals worth $2.6bn
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Abu Dhabi, UAE – Borouge has formally signed three major engineering, procurement and construction (EPC) contracts valued at approximately $ 2.6 billion for its Borouge 3 strategic expansion in Ruwais, Abu Dhabi.
The first contract worth $1,255 billion for the construction of two Borstar-technology polyethylene and two Borstar polypropylene units, as well as the second contract worth $400 million for the construction of a 350ktpa low density polyethylene (LDPE) unit, were signed with joint venture consortium Maire Tecnimont of Italy and Samsung Engineering of South Korea, on a lump sum turnkey basis.
The annual capacity of the new polyethylene units is 1,080ktpa and the new polypropylene units is 960ktpa.
A third contract worth $935 million for the utilities and off-site facilities for the expanded plant were signed with Hyundai Engineering and Construction of South Korea.
Borouge has previously awarded a $1.075-billion contract to Linde Engineering for the construction of the Borouge 3 ethane cracker, while Al Asab General Transportations and Contracting Establishment of Abu Dhabi are executing the Borouge 3 site preparation.
These significant investments will quadruple Borouge’s production capacity to over 4,500ktpa per year by 2013, making it the largest integrated polyolefins site in the world.
Borouge is a joint venture between the Abu Dhabi National Oil Co. (ADNOC), one of the world’s largest oil and gas companies, and Borealis, a major supplier of chemicals and plastics.
