Borouge 2 to get new olefins unit

Dubai: Abu Dhabi-based polymer producer Borouge yesterday awarded a contract worth approximately Dh1.1 billion ($300 million) to Samsung Engineering for the construction of a new olefins conversion unit (OCU) for Borouge 2, the major expansion project at the company's production facilities in Ruwais, Abu Dhabi.

Work on the OCU will begin on June 25 and is scheduled to be completed by mid-2010.

The unit, which will convert ethylene into propylene to feed two new Borstar technology poly-propylene plants, will be the world's largest using ABB Lummus licensed technology.

Total annual output from the OCU will be 752 kilotonnes of propylene plus 39 kilotonnes of butane-1 - totalling 791 kilotonnes.

Harri Bucht, chief executive of the Borouge production company, commented: "The signing of this contract, along with the other Borouge 2 packages, is testament to the momentum of the Borouge 2 project.

"This expansion is not only a cornerstone of Borouge's continued growth as a company, it is a milestone in the growth of the plastics industry in the Middle East. With the technology of this olefin conversion unit Borouge is leading the way in producing propylene monomer to meet the rising demand for Borstar high performance polypropylene in key markets."

Production to triple

Borouge 2 will triple Borouge's annual production capacity to two million tonnes of polyolefins and deliver a step change in Borouge's capacity to meet demand in new geographic and industry markets.

With increased reach, Borouge will be even better placed to help customers across the Middle East and Asia-Pacific to develop business opportunities in high performance applications.

Other contracts

In February, Borouge signed a $1.3 billion contract with Linde Engineering for the construction of a new ethylene cracker.

Earlier this month, Borouge signed a contract worth approximately $1.85 billion with Tecnimont of Italy for the construction of three new Borstar polyolefins units (along with associated material handling facilities, laboratory facilities and marine works).

Borouge also signed a contract at an estimated $1.2 billion with Tecnicas Reunidas of Spain to construct the offsite and utility facilities for its plant expansion.