Business | General
IPIC signs deal for chemicals complex
Abu Dhabi's International Petroleum Investment Company (IPIC) and plastics maker Borealis have signed a memorandum of understanding (MoU) with the Abu Dhabi Investment Council (ADIC) to prepare for the first phase of development of a multi-billion-dollar new Chemicals Industrial City to be located in the UAE capital.
- Staff Report
- Published: 00:38 March 20, 2008
Dubai: Abu Dhabi's International Petroleum Investment Company (IPIC) and plastics maker Borealis have signed a memorandum of understanding (MoU) with the Abu Dhabi Investment Council (ADIC) to prepare for the first phase of development of a multi-billion-dollar new Chemicals Industrial City to be located in the UAE capital.
The project comprises a naphtha cracker, downstream propylene and ethylene derivatives, a reformer, xylene, benzene, cumene, phenol and deriv-atives units.
Upon completion of the first phase in 2013, the complex will be the largest and most integrated of its kind in the world, supporting the Abu Dhabi government's strategy of diversifying its economy, the companies said in a statement. They did not give the value of the planned chemicals complex.
The output from the planned complex will also offer opportunities for further development of the downstream industries in the country.
Committed partners
"This new development brings together three committed partners to achieve a step change in Abu Dhabi's participation in the chemical industry as a testimony of unprecedented growth for the economies of the Middle East in general and for the economy of the UAE in particular," said Khadem Al Qubaisi, managing director of IPIC and vice-chairman of Borealis board.
"With this venture, we will become an industry model for chemical integration while helping support the goals of the Abu Dhabi government to diversify its economy," he said.
Borealis chief executive Mark Garrett said the initiative "fits well with our strategy to develop our base chemicals business significantly."
"We are already contributing to the growth of Abu Dhabi and we look forward to participating in this major milestone in the regional and global chemical and petrochemical landscape," he said.
IPIC owns 65 per cent of Borealis, while Austria's oil and gas group OMV owns the remaining 35 per cent. The state-owned firm invests in oil and gas-related assets and aims to expand its investment in the energy sector from the current $12 billion to $20 billion in the next few years.
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