Borouge updates on multi-billion dollar expansion plans

Borouge, the leading provider of innovative plastics solutions, today outlined progress towards awarding engineering, procurement and construction (EPC) contracts for the multi-billion dollar expansion of its production facilities in Ruwais, Abu Dhabi.

The company also announced that it has this week initiated the tender process for distribution and storage hubs in the Middle East, North East Asia and South East Asia and the provision of global shipping between all hubs. These hub operations will be implemented in phases beginning in 2007 and will bring Borouge closer to its markets and offer improved service to customers.

As one of the world’s largest plastics projects, 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.

The Borouge 2 project comprises an ethane cracker that will produce 1.4 million tonnes of ethylene per annum and the world’s biggest olefins conversion unit, producing 752 Kilotonnes per annum. Its two Borstar® polypropylene plants will have a combined annual capacity of 800 Kt while the Borstar Enhanced PE plant will have an annual capacity of 540 Kt. The new expansion will be located next to Borouge’s existing petrochemical complex in Ruwais.

Distribution hubs

The company has invited expressions of interest for:

• A distribution and storage operations hub in South-East Asia

• A distribution and storage operations hub in the UAE

• Two distribution and storage operations hubs in North-East Asia

• Container and product handling in Ruwais, UAE

• Global shipping between hubs in Middle East, North East Asia and South East Asia including ports of destination

Hubert Puchner, Chief Executive, Borouge Pte Ltd commented: "Together, these facilities will put in place the integrated, flexible and competitive supply chain needed to support Borouge’s expanded market positions and broader product portfolio."

Ethylene Cracker Package

Technical evaluation was completed and three bidders have been invited to submit prices by 30 October 2006. The bidders are Linde; Shaw Group; and Snamprogetti.

Utilities and Offsite Package

Invitations to bidders to provide utilities and offsite facilities have been sent to the market with technical bids due in the second half of November 2006.

Polyolefin Units Package

Technical bids have been received and are under evaluation for the two Borstar technology polypropylene units and the Borstar polyethylene unit.

Olefins Conversion Unit Package

After soliciting market interest, Borouge has commenced the prequalification process with selected potential bidders.

Harri Bucht, Chief Executive Officer, Abu Dhabi Polymers Company (Borouge) added: "Borouge 2 is a major step for Borouge. It’s not just a new phase for the company but for the Abu Dhabi economy as a whole. While it will increase our capacity to serve growing markets in the Middle East and Asia Pacific, we also expect it to be a driver for the growth of local downstream industries."

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.

Borstar® is Borealis’ proprietary technology supporting differentiated polyethylene and polypropylene products and is a registered trademark of Borealis.