Borouge signs $2.6bn deals

Borouge, a leading provider of innovative plastics solutions, formally signed three major engineering, procurement and construction (EPC) contracts valued at approximately $2.6 billion (Dh9.5bn) for its Borouge 3 strategic expansion in Ruwais, Abu Dhabi.

The first contract worth $1.25bn for the construction of two Borstar enhanced polyethylene and two Borstar enhanced polypropylene units, as well as the second contract worth $400 million for the construction of a 350,000 tonne per year low density polyethylene unit, were signed with the 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 1,080,000 tonnes and the new polypropylene unit's is 960,000 tonnes. A third contract worth $935m for the utilities and off-site facilities for the expanded plant was signed with Hyundai Engineering and Construction of South Korea.

Borouge has previously awarded a $1,075m 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 investments will quadruple Borouge's production capacity to over 4.5 million tonnes per year by 2013, making it the largest integrated polyolefins site in the world. Borouge is a JV between the Abu Dhabi National Oil Company and Borealis, a provider of chemical and innovative plastics solutions.

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