Borouge Expansion Strategy & Milestones

Background

In April 1998, Abu Dhabi National Oil Company (ADNOC) and Borealis A/S of Denmark formed the Abu Dhabi Polymers Company Ltd (“Borouge”) as a joint venture company for the purpose of constructing, owning, maintaining and operating an Ethylene/Polyethylene petrochemicals plant on a site in Ruwais, Abu Dhabi in the United Arab Emirates. A second joint venture company, Borouge Pte Ltd, (referred to as the “Borouge Marketing Company”) was formed in Singapore for the purpose of marketing and selling the products of Borouge, primarily in the Middle East and Asia Pacific regions.

In November 1998, an EPC contract was awarded to Alliance Bechtel / Linde to build a 600-kilo tonne (kts) ethane cracker along with all the associated Utilities and Off Sites Facilities, on the petrochemical complex site located at Ruwais.

In June 1999, Borouge awarded a contract to Tecnimont SpA to build the two Borstar® 225-kts Polyethylene lines and the Product Handling Facilities. Borouge’s petrochemical complex was successfully commissioned and commenced production in December 2001. The production plant was completed within budget and within the projected time schedule and was funded by the shareholders through a combination of equity and loans.

Borouge Three-Stage Expansion Plan

Borouge’s petrochemical complex is situated on a 250-hectare site located in Ruwais, approximately 250 kilometers west of Abu Dhabi city. The Project comprises three distinct steps.

Step I: 2001-2004

The Ethane treatment and steam cracker produces 600 kts per annum of Ethylene, based on ethane feedstock. The Polyethylene (PE) plant facility consists of two swing LLDPE/HDPE units, each with an initial capacity of 225 kts per annum of PE, based on the Borealis Borstar process.

Each unit is capable of producing bimodal HDPE and enhanced PE products in any combination. One of the units includes additional facilities necessary for the production of certain specialty pipe and jacketing PE products.

Step II: 2005-2007

Step II involves firstly the acquisition of ADNOC cracker rights and the related Ethylene storage and terminalling facility. Borouge is engaging in the expansion of one of the PE lines to 320 kts per annum, including some creep in the other PE line the total PE capacity of the facility will increase to 580 kts per annum. Step II was completed in the first quarter of 2005.

Step III: 2008-2010

In July 2003, the Sponsors signed a Memorandum of Understanding for the expansion of the Borouge petrochemical complex. The expansion project, referred to as Step III, comprises an ethane cracker producing Ethylene, an olefins conversion unit, and PE and PP plants. The capital cost for Step III is currently forecast to be in excess of USD 2.5 billion.

The Step III expansion will include two 400 kts per annum Borstar PP plants and a 540 kts per annum Borstar PE plant. The expansion capacity will be constructed alongside the existing Borouge plant at the petrochemical complex in Ruwais.

Sales and Marketing

Borouge has conducted extensive research into analysing and forecasting the future demand and pricing of PE and PP markets. The Borouge Marketing Company, the resources of which shall be increased accordingly, will undertake the sales and marketing of PE and PP products produced by the Step III expansion.

Reader enquiries

Borouge Pte Ltd

Singapore
+65 9154 8175
michele.ng@​borouge.com
www.borouge.com

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Notes for editors

Borouge and Borealis

Borouge and Borealis are leading providers of innovative, value creating plastics solutions. With more than 40 years of experience in polyolefins and using our unique Borstar® technology, we focus on the infrastructure, automotive and advanced packaging markets across Europe, the Middle East and Asia. Our production facilities, innovation centres and service centres work with customers in more than 170 countries to provide the materials that make an essential contribution to society and sustainable development. We are committed to the principles of Responsible Care® and to leading the way in 'Shaping the Future with Plastics'™.

For more information on Borealis and Borouge, a joint venture between Borealis and the Abu Dhabi National Oil Company, visit www.borouge.com and www.borealisgroup.com.

About ADNOC

ADNOC is a state owned company responsible for implementing the oil policy decisions issued by its governing body the Abu Dhabi Supreme Petroleum Council. ADNOC oversees all aspects of oil, gas and petrochemical activities in the Emirate of Abu Dhabi and is involved in exploration, production, refining, natural gas processing, chemicals and fertilizers, maritime transportation, distribution and marketing of crude oil, liquefied gas and refined petroleum products.

Borstar is a registered trademark of Borealis A/S, Denmark.