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Borouge and Linde/Consolidated Constructors Int’l Company (CCC) formally sign USD 1.3 billion cracker contract

  • Expansion of Borouge's production facilities to include the world's largest olefins conversion unit and Ethylene Cracker
  • Chancellor of the Federal Republic of Germany and UAE Minister of Economy attend contract signing ceremony in Abu Dhabi
  • Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis

Borouge, a leading provider of innovative plastics solutions, and a consortium of the Engineering division of The Linde Group and CCC today formally signed a contract worth approximately USD 1.3 billion for the construction of a new Ethylene Cracker, which is considered the largest grass roots gas cracker in the world with a capacity of 1.5 million tonnes per annum.

The signing ceremony took place in the presence of the Chancellor of the Federal Republic of Germany, Angela Merkel on her visit to Abu Dhabi, UAE, H.H. Sheikha Lubna Al Qasimi, UAE Minister of Economy and Michael Glos, German Federal Minister of Economics and Technology. The contract was signed by Harri Bucht CEO of Abu Dhabi Polymers (Borouge), Dr Aldo Belloni, Member of the Executive Board of Linde AG and Farid Asfour, Vice President, CCC, and marks the start of a new phase in an already successfully working relationship between Borouge, Linde and CCC.

The cracker is the first step in Borouge 2, the major expansion project being undertaken by Borouge at its production facility in Ruwais, Abu Dhabi, which will triple annual production capacity to two million tonnes of Polyolefins. The contract has been awarded to Linde Engineering in a consortium with CCC on a lump sum turn key basis, with preliminary work already under way and completion scheduled in 41 months' time in 2010.

"Borouge is about to enter the most exciting phase of its evolution," commented Harri Bucht, Chief Executive Officer, Abu Dhabi Polymers Ltd (Borouge). "Borouge 2 is one of the world's largest plastics projects and is a major step in the development the Middle East petrochemicals industry."

"We are proud to be working closely with Borouge on what is a genuinely exciting project. Our continued partnership with Borouge will help bring to fruition one of the most forward looking projects in the region today," commented Dr Aldo Belloni of The Linde Group.

Borouge 2 is a key part of Borouge's strategy for growth, maximising output and consolidating its position in markets throughout the Middle East, Asia-Pacific and Africa. As well as the ethylene cracker, the Borouge 2 project will comprise 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.

The commencement of new expansion coincides with the celebrations last month of five years of production at Borouge's Ruwais site. Since construction of first bimodal polyethylene unit in the Middle East was completed in December 2001, around 2.3 million tonnes of polyethylene have been produced by Borouge, providing innovative solutions for customers in a wide range of industry sectors.

Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, a leading provider of innovative, value creating plastics solutions.

END

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Borouge and Linde/Consolidated Constructors Int’l Company (CCC) formally sign USD 1.3 billion cracker contract English, German
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