Borouge signs major contracts valued at US$ 2.6 billion to advance its strategic Borouge 3 expansion

06-Jul-2010 - United Arab Emirates

Borouge, a joint-venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, formally signed three major Engineering, Procurement and Construction (EPC) contracts valued at approximately US$ 2.6 billion for its Borouge 3 strategic expansion in Ruwais, Abu Dhabi, in the UAE.

The signing ceremony took place at the Sheikh Khalifa Energy Complex in Abu Dhabi in the presence of dignitaries from the UAE, South Korea and Italy. The contracts were signed by Abdulaziz Alhajri, CEO of Abu Dhabi Polymers Company (Borouge), Roberto Bertocco, Managing Director of Tecnimont, Kiseok Park, CEO and President of Samsung Engineering, and Jung Kyum Kim, President and CEO of Hyundai Engineering and Construction.

The first contract worth US$ 1,255 billion for the construction of two Borstar® enhanced polyethylene and two Borstar® enhanced polypropylene units, as well as the second contract worth US$ 400 million for the construction of a 350,000 tonnes per year (t/y) low density polyethylene (LDPE) 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 t/y and the new polypropylene units is 960,000 t/y.

A third contract worth US$ 935 million for the utilities and off-site facilities for the expanded plant were signed with Hyundai Engineering and Construction of South Korea.

These significant 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.

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