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05-28-2010

Borealis: Expansion of Borouge 3 Ethance Cracker

Borouge, a joint-venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis and The Linde Group formally signed a USD 1.075 billion contract for the construction of a 1.5 million tonnes per year (t/y) ethane cracker at Borouge’s production site in Ruwais, Abu Dhabi, in the UAE.

The new cracker, the third of its kind to be built by The Linde Group for Borouge in one decade, complements the existing 600,000 t/y and planned 1.5 million t/y ethane crackers at the plant. After completion of the new cracker, Borouge will have the world’s largest ethane cracker complex, setting a new benchmark for the industry.

Related to this, Borouge has awarded three major Engineering, Procurement and Construction (EPC) contracts valued at approximately USD 2.6 billion for its Borouge 3 expansion project in Ruwais. These

significant investments will expand the production capacity of the plant to 4.5 million tonnes per year (t/y) by 2013, making it the largest integrated polyolefins site in the world.

A contract worth USD 1,255 billion for the construction of two Borstar enhanced polyethylene and two Borstar enhanced polypropylene units, as well as a contract worth USD 400 million for the construction of a 350,000 t/y low density polyethylene unit, was awarded to the Joint Venture consortium Tecnimont of Italy and Samsung Engineering of South Korea, on a lump sum turnkey basis. The annual capacity of the polyethylene units is 1,080,000 t/y and the polypropylene units, 960,000 t/y.

In addition, a contract worth USD 935 million for the Utilities and Off-site facilities for the expanded plant was awarded to Hyundai Engineering and Construction of South Korea.

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