Borouge awards approximately USD 1.3 billion Borouge 2 Cracker (EU2) contract to Linde Engineering

28.11.2006

Borouge, the leading provider of innovative plastic solutions, today announced that it has awarded the contract to build its new ethylene cracker to Linde Engineering. The cracker will have a capacity of approximately 1.5 million tonnes per annum and is considered to be the largest gas cracker in the world.

The value of the contract is approximately USD 1.3 billion and is awarded on a lump sum EPC turnkey basis. Work is expected to begin in the first week of December 2006, and is scheduled for completion in 41 months from the effective date.

This award is the first step in Borouge 2, the major expansion project being undertaken by Borouge, which will triple production capacity.

Borouge 2 is a key part of Borouge’s strategy for growth, tripling its production capacity and consolidating its position in markets throughout the Middle East, Asia-Pacific and Africa. It is expected to come on stream by 2010.

As well as the ethylene cracker, the Borouge 2 project comprises the world’s biggest olefins conversion unit, producing 752 Kilotonnes per annum and two Borstar® polypropylene plants with a combined annual capacity of 800 Kt along with a new Borstar Enhanced PE plant that will have an annual capacity of 540 Kt to compliment the existing 600 Kt unit.

In addition, it will include a general Utilities and Offsite package. The award of the above three remaining packages is expected during the first and second quarter 2007.

The new expansion will be located next to Borouge’s existing petrochemical complex in Ruwais, Abu Dhabi in the United Arab Emirates.

For further information please contact:

Craig Halgreen
Group Communications Director, Borealis AG
+32 476 63 01 53
lypresbo@borealisgroup.com

John Webster
Group Communications Manager
+65 63 11 42 66
john.webster@borouge.com

Borealis is a leading provider of innovative, value creating plastics solutions. With more than 40 years of experience in the polyethylene (PE) and polypropylene (PP) business, we focus on pipe systems, energy and communications cables, automotive and advanced packaging markets. Our technology shapes plastic products that make an essential contribution to the society in which we live. We are committed to lead the way in ‘Shaping the Future with Plastics.’

Borouge is a Borealis joint venture with the Abu Dhabi National Oil Company. Its state-of-the-art production facility in Ruwais, Abu Dhabi, in the UAE, produces Borstar-enhanced polyethylene products for the pipe, wire and cable, and advanced packaging markets. It is the exclusive provider of the entire Borealis product line throughout the Middle East and Asia-Pacific.

Borstar is Borealis’ proprietary technology supporting differentiated PE and PP products.