Total, Abu Dhabi Oil Co To Build EUR100 Million Melamine Plant
Abu Dhabi polymers Company Limited （Borouge）
Abu Dhabi National Oil Company, ADNOC 60 %
Borealis（Denmark-based leading polyolefins producer ) 40%
first significant dowstream petrochemical investment
ABU DHABI, Aug. 2, 2000
(WAM)--The Abu Dhabi polymers Company Limited Borouge was
established as part of plans to develop Abu Dhabi's oil
and gas potential and expand the
August 11, 2003 Dow Jones
Total, Abu Dhabi Oil Co To Build EUR100 Million Melamine Plant
French oil company Total SA (TOT)
and Abu Dhabi National Oil Co., or ADNOC, said Friday that
they've reached an agreement to invest EUR100 million in the
construction of a new melamine plant in Abu Dhabi.
Total said the project will be carried out by Ruwais Fertilizer Industries, or Fertil, a fertilizer maker in which it holds a 33% interest and ADNOC owns a 67% stake.
The new plant is scheduled to start production by late 2006 with an annual capacity of 50,000 tons.
Most of the melamine, used to manufacture resins for wood panels and flooring, will be shipped to Europe and processed by Atofina, Total's chemicals division.
August 8, 2003 Total
Total and ADNOC sign a memorandum of understanding for the construction of a melamine plant in Abu Dhabi
Total and the Abu Dhabi National Oil Company (ADNOC) signed a memorandum of understanding for the development and construction of a melamine plant in Abu Dhabi by the jointly owned Ruwais Fertilizer Industries (Fertil).
Created in 1980, Fertil is a joint venture between ADNOC (66.66%) and Total (33.33%) set-up to run a nitrogen fertilizer plant and market ammonia and urea primarily in Asia.
The melamine plant is planned to enter into production by the end of 2006 with an annual capacity of 50,000 tons. Fertil will supply urea, the main feedstock. The global investment will be around 100 million euros.
The melamine production is expected to target supplying Atofina in Europe. Melamine is used primarily to manufacture resins for the wood based panel and flooring industries. Furniture, housing and construction sectors are the main users of these resins.
This project consolidates Total's presence in the United Arab Emirates and provides Atofina, the Group's chemical branch, a regular and long term supply of melamine in the Middle East.
Borouge developing into world scale petrochemical complex
Borouge, Borealis' joint venture with ADNOC, is expanding its
existing Borstar (注 ＰＥ商標）capacity and studying further expansion to
form a world scale petrochemical complex at Ruwais, Abu Dhabi in
the UAE. Building on the successful start up and first two years
of operation, increasing market demand for enhanced polyolefins
and more feedstock becoming available, the next steps are
underway to expand the Borouge petrochemical complex.
Borouge will invest USD 40 million to debottleneck the existing Borstar enhanced polyethylene (PE) capacity from 450,000 to 580,000 tonnes per annum. The project, which includes expansion of material handling facilities, is to be completed by Q2 2005. In addition, Borouge will assume full off take of the existing 600,000 tonnes per annum ethylene cracker.
To further develop Borouge, its owners, ADNOC and Borealis, earlier this year signed a Memorandum of Understanding and are proceeding with a feasibility study for a new world scale cracker and downstream polyolefin plants. The expansion is based on two ADNOC natural gas developments in Abu Dhabi, equivalent to approximately 1.4 million tonnes ethylene. Conclusions are likely to be made during 2004 with expected start-up of the new plants in 2008.
"We have successfully positioned our products in the targeted markets and applications. Our customers are extremely satisfied with the superior quality of our enhanced PE products using Borealis' bimodal Borstar technology," says Hubert Puchner, Chief Executive Officer of Borouge Pte Ltd.,
"We are looking forward to offering more of these valuable products to the market. The demand for polyolefins in the Middle East and Asia is expected to grow annually between six percent and eight percent until the year 2010".
"The petrochemical industry never stands still," Harri Bucht, Chief Executive Officer of Abu Dhabi Polymers Co. Ltd (Borouge) comments.
"Borouge has performed beyond expectations to date with the polyethylene plants already exceeding their nameplate capacity. By expanding our olefins and polyolefins production, we will achieve greater cost efficiency and sharpen our competitive edge. The planned expansions are a major step in developing Borouge into a leading polyolefins company in the Middle East based on a world scale petrochemical complex."
Borouge's owners bring complimentary strengths to the joint venture with ADNOC providing resources and expertise in the feedstock area along with local market knowledge and relationships. Building on a strong platform in the oil and gas
industry, these announcements further demonstrate ADNOC's continued focus on downstream petrochemical activities in Abu Dhabi and commitment to polyolefins.
Borealis provides olefins and polyolefins technology coupled with commercial and operational expertise.
"The Borouge expansion plans represent a further strengthening of our partnership with ADNOC," says Borealis' Chief Executive John Taylor.
"The significant growth plans for Borouge will reinforce Borealis' presence in the Middle East and Asia. This is a core element in Borealis' strategy of becoming a leading, profitable integrated polyolefins supplier." John Taylor concludes.
Foster Wheeler Awarded Project Management Consultancy Services Contract for UAE Petrochemicals Complex Expansion
Foster Wheeler Ltd. announced today that its subsidiary Foster Wheeler International Corporation's Abu Dhabi Branch has been awarded a project management consultancy (PMC) services contract by Abu Dhabi Polymers Company Limited (Borouge) for a major expansion of the Borouge petrochemicals facility at Ruwais, United Arab Emirates.
Borouge is a joint venture between Abu Dhabi National Oil Company and Copenhagen-based Borealis A/S.
The Foster Wheeler contract value was not disclosed and the project will be included in the company's third-quarter 2005 bookings.
"Foster Wheeler is pleased to be selected by Borouge as their PMC partner for this important expansion project," said Steve Davies, chairman and chief executive officer of Foster Wheeler's UK office. "This latest petrochemicals award is a further reflection of the quality of our project management and engineering expertise, and our track record of delivering successful projects in the Middle East. We will work closely with Borouge in an integrated team to fully satisfy all of their business objectives."
Foster Wheeler will provide professional project management, project control and engineering services to assist Borouge's management team in scope definition, front-end engineering design (FEED), contracting, scheduling, and environmental impact assessment up to award of EPC contracts with an option for services during the EPC phase for the project.
"The expansion project, known as the Borouge STEP III project, will more than double the capacity of the existing ethane cracking and polyethylene production units, and also marks our entry into the important polypropylene market," commented Adel-Khalifa Albuainain, Vice President - Projects, Borouge. "We are delighted to have selected Foster Wheeler as our PMC for this important project. We were impressed by Foster Wheeler's track record and also the quality and commitment of Foster Wheeler's staff and management."
The existing Borouge facility includes a 600,000 metric tonnes per annum (mtpa) ethane cracker and also produces 580,000 mtpa of polyethylene. The Borouge STEP III project comprises a new ethylene complex, which includes a 1.4 million mtpa ethane cracker and boilers, a 540,000 mtpa polyethylene unit, two 400,000 mtpa polypropylene units, an olefins conversion unit and associated offsites and utilities. The polyethylene and polypropylene plants will both use Borealis' proprietary Borstar(R) technology. Project completion is expected in 2010.
The Plastics Exchange 2006/6/21
Abu Dhabi Polymers plans big expansion of petrochem facility
Abu Dhabi Polymers Company (Borouge) has announced a multi-billion-dirham expansion project at its petrochemicals manufacturing facility in Ruwais, Abu Dhabi. The project will be completed on schedule by mid-2010. Harri Bucht, chief executive officer of Borouge, said the expansion represents a new phase not just for the company but also for Abu Dhabi.
"It is one of the world's largest plastics projects and will triple production capacity at the Ruwais facility," Bucht said. "The project will encourage the growth of downstream industries and increase our capacity to serve growing markets in the Middle East and Asia." The Borouge 2 project comprises an ethane cracker that will produce 1.4 million tonnes of ethylene per annum and the world's biggest 752 kta olefins conversion unit.
Its two Borstar enhanced polypropylene PP plants will have a combined annual capacity of 800 kilo tonnes while the Borstar enhanced PE plant will boast an annual capacity of 540 kilo tonnes. Front End Engineering and Design (FEED) of the project's utilities and off-sites is due for completion this summer while the polyolefins is scheduled for completion in late summer.
The FEED of the Olefins Conversion Unit is set for completion in September this year. "Progress on the new world scale project has been rapid. Evaluation of the bids for the cracker package has been undertaken and will be completed by October and the project is expected to be delivered by mid-2010," Bucht added.
Since the completion of its production site in Ruwais in 2001, Borouge has become a leading supplier of value-adding specialist plastics materials for applications such as water, gas and industrial pipe systems, power and telecommunications cables, advanced packaging, medical devices and automotive components. This has brought the company an annual turnover of $860 million in 2005.
It was stablished in 1998 as a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, a pre-eminent European plastics provider. Borealis is majority owned by the International Petroleum Investment Company (IPIC) of Abu Dhabi and has more than 40 years experience in providing advanced polyolefin solutions for industries that use film, coating and thermoforming products.
Borouge awards approximately USD 1.3 billion Borouge 2 Cracker (EU2) contract to Linde Engineering
Borouge, the leading provider of innovative plastic solutions, today announced that it has awarded the contract to build its new ethyne cracker to Linde Engineering; the cracker will have a capacity of approximately 1.5 million tons 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 turn key basis. Work is expected to begin in 1st 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 PR 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 3 remaining packages is expected during 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.
2006/6 ADNOC news
ADNOC's newest company to
become operational in early 2009
The Abu Dhabi National Oil Company (ADNOC) and Agrolinz Melamine International (AMI) signed a contract on a new melamine production center in Ruwais, Abu Dhabi, in early April.
The Abu Dhabi Melamine Industry will be another milestone of ADNOC's strategy to meet the world's growing demand for high value and specialized petrochemical products. The project cost is estimated at US$200 million of which ADNOC holds 60%, while Austrian Agrolinz Melamine International will own the remaining 40%.
The new company, which is expected to be operational in the first quarter of 2009, will be the 15th ADNOC Group subsidiary and the third petrochemical company after Fertil and Borouge. It will produce 80,000 tons of melamine per annum, using urea from Fertil as a feedstock.
H.E. Yousef Omair bin Yousef, SPC Secretary General and CEO ADNOC, who signed the agreement on the side of ADNOC, said" "Melamine is the right fit in the scenario as we have the raw material and Agrolinz has the latest technology and marketing know-how. It is also the right fit in the global strategy for Austrian Agrolinz, IPIC and ADNOC."
Mr. Joachim Grill, AMI Group Board spokesman, has signed the agreement on the side of AMI.
In a press conference at the Emirates Palace after signing the ceremony, His Excellency CEO said that ADNOC had been making a well planned and steady expansion since its inception in 1971. Operating under the directives of the Supreme Petroleum Council (SPC), chaired by H.H. Sheikh Khalifa Bin Zayed Al?Nahyan, President of the UAE and Ruler of Abu Dhabi, which formulates and oversees the implementation of Abu Dhabi petroleum policies, the company has broadened its activity in establishing a number of subsidiaries and creating an integrated oil, gas and Petrochemical industry.
"Today, the company manages and oversees oil production of more than 2.5 million barrels a day and total gas production in the region of 6.5 billion SCFPD; ranking it among the top ten oil and gas companies in the world," HE Yousef Omair said.
Borouge to expand production to include melamine
Borouge announces that it is continuing with the construction of a new melamine plant in Ruwais, Abu Dhabi, the location of its existing world-scale polymer production facilities. The company is planning to take over a project currently being undertaken by the Abu Dhabi National Oil Company (ADNOC) and AMI Agrolinz Melamine International (AMI) in Ruwais.
The development would see the creation of a melamine plant with an annual production capacity of 80,000 tonnes. The front end engineering and design phase has begun and it is expected that production would come on stream following the completion of Borouge 2, the major expansion which will triple Borouge's Borstar® polyolefin production capacity.
Increasing global demand for melamine, particularly in the Middle East and Asia Pacific regions represents an opportunity for Borouge to broaden its product portfolio in line with its strategy to explore opportunities for expansion. The new plant will benefit from the proximity to Borouge's Ruwais facilities, from synergies with existing operations and from the company's production expertise and operational track record.
The development of a melamine plant within Borouge would represent a rational step for its owners, ADNOC and Borealis. As announced in December 2006, AMI' shares are planned to be contributed to Borealis by its current owners, the International Petroleum Investment Company (IPIC) of Abu Dhabi and OMV, the Austrian oil and gas group. AMI, as a subsidiary of Borealis, will provide its own proprietary melamine technology and market know-how to Borouge for the project.
Harri Bucht, Chief Executive Officer of the Borouge production company in Abu Dhabi, commented: "Integrating this project into Borouge will be a natural move for us. With our depth of experience and proven operational excellence, the project will benefit from a number of synergies as well as increasing the overall competitiveness of our operations."
Borouge Formally Signs US$3.1 Billion Contracts for Expansion Project
Borouge, a leading provider of innovative, value creating plastics solutions, today formally signed contracts valued at approximately US$3.1 billion for Borouge 2, the major expansion project at the company's production facilities in Ruwais, Abu Dhabi in the United Arab Emirates.
At a ceremony held at Borouge's new headquarters in Abu Dhabi, UAE, contracts were signed by Mr. Harri Bucht, CEO of Borouge production company, Mr. Fabrizio Di Amato, Chairman of Tecnimont S.p.A. of Italy, Juan Ilado Arburua, Vice Chairman and CEO of Tecnicas Reunidas S.A. of Spain.
The contract with Tecnimont S.p.A., worth approximately US$1.855 billion, is for the construction of three new Borstar® technology polyolefins units and associated material handling facilities, laboratory facilities and marine works. This is the largest supplier contract Borouge has signed since its inception as a company in 1998 and is awarded on a lump sum turnkey basis.
The contract with Tecnicas Reunidas S.A., worth an estimated value of US$1.234 billion, is for the construction of the offsite and utility facilities for the expanded plant, and is awarded on a convertible lump sum turnkey basis.
Preliminary work will begin immediately and both contracts are scheduled to be completed in 2010.
Harri Bucht, Chief Executive Officer of the Borouge production company, commented: "Today marks a major step forward in our expansion plans and signing these contracts lays down a path to tripling our production capacity by 2010. This is a major project that demonstrates the commitment and ambition not just of Borouge but of the petrochemical industry in the Gulf. We look forward to working closely with our new partners to make it a reality."
The Borouge 2 project will increase Borouge's annual production capacity to two million tonnes of polyolefins, including for the first time, polypropylene.
Harald Hammer, Chief Executive Officer of the Borouge marketing company commented: "Market acceptance of the Borstar range since Borouge's inception in 1998 has been exceptional. These contracts increase the momentum of the Borouge 2 expansion bringing additional Borstar Enhanced Polyethylene and now Borstar Enhanced Polypropylene to customers across the Middle East and Asia-Pacific.
By quadrupling the number of grades we will serve our innovative customers with complete solution concepts in high performance applications."
In January 2007, Borouge began the first stage of the construction process, when it formally signed a US$1.3 billion contract with Linde Engineering/CCC for the construction of a new ethylene cracker. The contract was awarded to Linde/CCC on a lump sum turnkey basis, with preliminary work already under way and completion scheduled for 2010.
Borouge to invest in automotive market with new compounding facility in China
Borouge, a leading provider of innovative, value creating plastics solutions, today announced that it plans to develop a compounding facility in China for the manufacture of high performance polypropylene compounds for applications in the automotive and electrical appliance sectors.
The new compounding facility will be constructed in the Shanghai area and will have an annual capacity of up to 50,000 tonnes with further expansion possibility. It will be strategically located to take advantage of the supply of Borstar® polypropylene from its production plant in Ruwais, Abu Dhabi through an advanced logistics concept and to serve current customers such as VW, GM and PSA in China, future customers in China and other Asian and Middle East markets.
The compounding facility will primarily provide polypropylene solutions for the automotive industry including endurance and high impact interior and exterior applications such as dashboards, door panels and bumpers, as well as mineral filled PP and glass fibre reinforced PP for under the bonnet applications. Value-added compounds for electrical appliances will also initially be part of the manufacturing portfolio.
The new site complements Borouge 2, the major expansion of Borouge's production facilities in Ruwais which will triple its annual capacity to two million tonnes of polyolefins and enable the production for the first time of polypropylene matrix materials. The increased capacity is expected to come on-stream in 2010, in parallel to the start-up of the new polymerisation units in the Borouge 2 project. It also complements the development of Borouge and Borealis' network of Innovation Centres focused on customer applications. Borealis is together with the Abu Dhabi National Oil Company (ADNOC) a co-owner of Borouge and already markets its high value polyolefins to the automotive markets in Asia through Borouge.
By locating this new facility in China, Borouge expects to take further advantage of the country's status as the world's fastest growing automotive market and its drive to become the biggest car producer in the world within the next 10 years. Borouge's investment in Shanghai, which builds on the know- how of Borealis' European and Brazilian compounding assets, underlines the company's commitment to serve the automotive and electrical appliance sectors.
"This investment represents a very significant step in the ability of Borouge and Borealis to serve its customers in the automotive industry with innovative plastics solutions and to take advantage of this rapidly growing market sector," comments Harald Hammer, Chief Executive Officer of the Borouge marketing company. "The location in Shanghai puts us close to the high growth markets in Asia, close to our supply channels and close to our customers."
"A manufacturing presence in China helps us meet the increasing demand from the automotive industry for innovative, value creating solutions," adds Paul Turner, Vice President Automotive and Appliances at Borealis. "This is a natural progression in the growth of our business in Asia and puts us right at the heart of one of the most dynamic economies in the world."
Abu Dhabi Basic Industries Corporation (ADBIC)
February 10, 2008
Abu Dhabi to add value to plastics production
government of Abu Dhabi is to provide investment funding to
develop downstream plastics processing, mirroring what the Saudi
Arabian government did in the mid '70s. Its Abu Dhabi Basic
Industries Corporation (ADBIC) is to launch a $150 million
investment fund this year which will make available money for
entrepreneurs to set up plants to convert locally produced
plastics into finished goods.
Separately, ADBIC itself is currently planning to invest $3·82 billion in a plant to make pipes, cables and automotive parts.
2008/2/4 Khaleej Times
Capital to launch $150m fund for plastic sector
|Abu Dhabi is set to launch
a string of industry- specific investment funds, which
will make available money to the entreprenuers, to boost
industrial activity in the emirate, to convert locally
produced raw material into finished goods, said an
"We will begin with an Investment Fund for Plastic sector, with a size of $150 million, to be launched this year, said Abdullah Saeed Al Darmaki vice president Abu Dhabi Basic Industries Corporation (ADBIC), speaking at a session on industrialistation in the emirate, at Abu Dhabi Economic Forum.
Since, Abu Dhabi has to grow in all industrial areas like aluminum, iron and steel and others, so next logical step would more sector dedicated Investment Funds for those sectors, as well.
The funding will come from the government, while ADBIC would be the executing agency. He did not elaborate on whether funding will be provided at subsidised rate of interest etc.
The inspiration to the fund comes from Saudi Arabia, which in mid seventies launched a fund which used to set up petrochemical downstream industry, as an incentive. That money has resulted in a sprawling SMEs (small and medium-sized enterprises) industry, providing tens of thousands jobs and contributing to the economy.
Asked why an Investment Fund for Plastic sector is being launched, he said that since a Petrochemicals Park will be launched in Industrial City of Abu Dhabi this year, in cooperation with ZonesCorp, where downstream industry would be setup, using resin manufactured in Abu Dhabi.
would be using our plastic raw materials into
manufacturing finished goods for local as well as exports
markets, said Al Darmaki.
January 17, 2008 khaleejtimes.com
Abu Dhabi to launch industrial cities for polymer and metals
Abu Dhabi would have two
industry- specific economic zones called 'Polymer Park' and
Large as well as medium scale industries would be set up in the zones by the private sector, capitalising on the emirate's strong comparative advantage of capital, abundant and cheap energy resources, labour and ideal access to markets, said an official.
"Polymer Park would use Abu Dhabi's prime product polymer resin as a raw material to be converted into value added consumer as well as industrial products, while industries to be set up in the Metal Park, would use aluminum and steel as raw material to manufacture goods for exports purposes," said Dr Jim White, chief operating officer of Abu Dhabi Basic Industries Corporation (ADBIC), while speaking to reporters, on the sidelines of Executive Forum on 'The world in 2008', organised by The Economist .
He said that government would be deciding on the tax and other benefits to be allowed to the industries to be set up in the two parks.
About the Polymer Park, he said it is well in advanced stage, and may be announced as early as this quarter, while the Metal Park is in conceptual stage, which may take some time.
Both industrial parks would be located in the Industrial City of Abu Dhabi, located outside Mussafah industrial estate, for which land has already been earmarked, and infrastructure would be developed very soon.
The polymer park would be the advanced version of Taiwan's plastic industry, which is a symbol of value addition and export- led job creation.
The initial response from large companies as well as SMEs to this industrial zone has been overwhelming and within 18 months of the launch, the first plastic factory would go into ground-breaking phase. The size of the investment being looked at would be $20-25 million, and leading names in the industry would have their manufacturing facilities, he said.
Dr Jim White estimated that through the next five years, the industrial zone would generate $1 billion worth investment.
Metal Park: This park would also create Abu Dhabi's niche in the sector. When the two aluminum smelters and mega steel mills are rolled out, raw materials too would be consumed by these industries, he said.
In this regard, ADBIC has taken over Abu Dhabi's premier steel mill, whose capacity is being multiplied to 5 million metric tonnes , under a five year plan, from present levels of 700,000 metric tonnes, in a phased manner. The phase which is already half-way through will see production being doubled to 1.4 million metric tonnes, costing $1 billion.
The steel unit will import raw material from Brazil and Canada and convert it into steel bars and other products for local use.
Feb.3 2008 Reuters
Abu Dhabi plans $6.5bn steel, plastics plants
State-owned Abu Dhabi Basic Industries Corp (Adbic) plans to invest $6.5 billion to build a plastics factory and expand a steel plant, part of the emirate's drive to reduce its reliance on oil.
The plastics plant, a joint venture, will be ready next year, Abdullah Saeed Al-Darmaki, vice president for petrochemicals at Adbic, told Reuters on Sunday on the sidelines of an investment conference in the UAE capital.
"The investment in the plant will total 14 billion dirhams ($3.82 billion)," Darmaki said, declining to identify the partner.
"The plant will be used for making pipes, cables, automotive parts, and other products mainly used in the region."
Adbic will invest a further 10 billion dirhams in expanding a steel plant by 50 percent until 2010, the company's chairman, Hussain al-Nowais, told Reuters.
"We are creating the largest integrated steel plant in the region that will have capacity of 3 million tonnes per annum," Nowais said. Capacity now is 2 million tonnes per year.
Emirates Steel Industry was set up five years ago with capacity of 600,000 tonnes per year before being taken over by Adbic.
"Adbic is trying to create a cluster of industries in Abu Dhabi to support each other," Nowais said. "Our aim is to add value and the industries should be economically feasible."
Borouge announces further
strategic expansion of polyolefins operations beyond Borouge 2
a further expansion of its polyolefin operations in Abu Dhabi to add approximately 2.5 million tonnes per year of capacity by 2014.
2008/4/7 Borouge Foster Wheeler Awarded Project Management Consultancy Services Contract for Expansion
Borouge announces further
strategic expansion of polyolefins operations beyond Borouge 2
Borouge, the leading provider of innovative, value creating plastics solutions today announced that it has initiated the feasibility study for Borouge 3: a further expansion of its polyolefin operations in Abu Dhabi to add approximately 2.5 million tonnes per year of capacity by 2014.
The proposed expansion would enable Borouge, a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, to meet the growing demands of specific polyethylene and polypropylene markets in the Middle East and Asia in pursuit of its strategy to create value through innovation.
The Borouge 3 study will explore options to take advantage of additional feedstock becoming available from planned upstream ADNOC expansions to expand both Polyethylene and Polypropylene production capacities beyond the current Borouge 2 Project which is under construction and on target for start up in 2010.
Included in the Borouge 3 development scheme is a Low Density Polyethlene (LDPE) unit to produce high performance material for wire & cable applications. Borouge co-owner Borealis is already the market leader in wire & cable applications and this further expansion would strengthen its global market leadership. The feasibility study will also explore ways to increase Borouge’s competitive position in Pipe, Automotive and Advanced Packaging applications to serve customers with completely new product generations.
The proposed expansion will boost Borouge’s total production capacity to 4.5 million tonnes per year. It will be located alongside the existing Borouge 1 and Borouge 2 petrochemical complex at Ruwais, Abu Dhabi, in the United Arab Emirates.
“Borouge 3 is a giant step in our evolution and a testament to our capability to grow and meet the expectations of our customers and our owners. We are proud to build on the strength and trust we’ve gained as leaders in Operational Excellence in the Middle East since we first began production in 2001,” says Abdulaziz Alhajri, Chief Executive Officer, Borouge Production Company.
“This is another step in the execution of our company strategy to deliver the value adding market applications of the future and will enable us to consolidate our leadership of the wire and cable markets in Asia and the Middle East,” says Harald Hammer, Chief Executive Officer, Borouge Marketing Company.
Borouge’s current capacity is 600,000 tonnes of polyethylene per year, and the Borouge 2 expansion project will increase capacity to 2 million tonnes per year. Construction of Borouge 2 began in late 2007 and consists of an ethane cracker of 1.5 million tonnes per year, olefins conversion unit of 752,000 tonnes per year (the world’s largest), two Borstar polypropylene plants with a combined annual capacity of 800,000 tonnes, along with a new Borstar Enhanced polyethylene plant with an annual capacity of 540,000 tonnes.
“The Borouge joint venture has been a success story since the inception of its sales and marketing in 1998 and production in 2001. ADNOC has confidence investing in further development of Borouge’s core business and providing another platform to enable the government of Abu Dhabi to support downstream industry and further diversify its economy,” says Rashed Saud Al Shamsi, Petrochemicals Director of ADNOC.
"The further development of Borouge is in line with Borealis' strategy to actively participate in the continuing strong market growth in the Middle East and Asia," confirms Henry Sperle, Borealis Executive Vice President for Middle East Asia. "This significant expansion in polyolefins, based primarily on our unique Borstar technology, compliments our current expansion plans in base chemicals in the region."
Abu Dhabi to set up
world's largest chemicals complex
Abu Dhabi, which is setting up Chemicals Industrial City in Taweelah's Khalifa Industrial Zone, has finalised its plan to establish the world's largest chemicals complex.
The multi-billion dollar project, due to complete in 2013, will manufacture olefins, aromatics, oxide and ammonia derivatives.
The Chemaweyaat Complex-1 will be the first project to be completed at the Chemicals Industrial City. It is expected to be the world's largest grassroots fully chemical integrated complex with a total production of around seven million tonnes per annum of olefins, aromatics, oxide and ammonia derivatives.
Abu Dhabi Ports Company (ADPC), which owns Khalifa Industrial Zone, has signed an MoU with Chemaweyaat, an initiative launched by ADIC and the International Petroleum Company (IPIC) to develop the mega project in Chemicals Industrial City.
"The location of this large scale petrochemical complex is a major milestone for the development of the industrial cluster at the Khalifa Industrial Zone," said Ahmed Al Calily, CEO and MD of ADPC.
"Chemaweyaat, as an anchor tenant, will attract additional investments from all parts of the supply chain and will create a viable chemical and petrochemical cluster. This will deliver valuable collective benefits to the port and the industrial zone," he added.
Mohamed Al Azdi, Chairman of the Chemaweyaat Development Committee, said the new Chemicals Industrial City will not only provide the physical space for major development, but also help export future production efficiently.
He said that Chemaweyaat will look forward to attracting further downstream industries to Taweelah through the broad range of chemical and petrochemical products to be produced there.
KPIZ is a multi-purpose facility strategically located in Taweelah between Abu Dhabi and Dubai. It includes the construction of a world-scale container and industrial port, and the development of over 100 square kilometres of industrial, logistics, commercial, educational and residential special economic and free zones.
May 05, 2008 fibre2fashion.com
ADIC to develop Chemicals Industrial City in Taweelah area
Abu Dhabi Ports Company
(ADPC) has signed an MOU with Borealis / Abu Dhabi Investment
Council ADIC on behalf Chemaweyaat, an initiative developed by
ADIC and the International Petroleum Company (IPIC) to speed up
Abu Dhabi’s involvement in the Chemical
Industry, with the objective to locate the new planned Chemicals
Industrial City at Khalifa Industrial Zone at Taweelah.
The first project to be located at the Chemicals Industrial City is Chemaweyaat Complex 1. It is expected to be the world’s largest grassroots fully chemicals integrated complex with a total production of around seven million tons per annum of olefins, aromatics, oxide and ammonia derivatives.The Chemaweyaat Complex 1 is expected to be complete by 2013.
"The location of this large scale petrochemical complex is a major milestone for the development of the industrial cluster at the Khalifa Industrial Zone. Chemaweyaat, as an anchor tenant will attract additional investments from all parts of the supply chain and will create a viable chemical and petrochemical cluster. This will deliver valuable collective benefits to the port and the industrial zone" said Mr. Ahmed Al Calily, CEO & MD at ADPC.
Mr. Mohamed Al Azdi, Chairman of the Chemaweyaat development committee said "we are very pleased with the opportunity to locate the new Chemicals Industrial City in Khalifa Industrial Zone at Taweelah as it provides us not only the physical space for major development, but also helps us to export our future production efficiently. We also look forward to attracting production
Borouge commits to further the strategic expansion of its polyolefins operations in Abu Dhabi
o Borouge 3 to come on stream in Q4 2013 to capture the additional feedstock availability resulting from the upstream refinery and gas processing expansions of ADNOC (Abu Dhabi National Oil Company).
o Approximately 2.5 million tonnes per year (t/y) of polyolefins capacity to be added to support Borouge’s growth in the Middle East and Asia
o Borouge 3 project adds low density polyethylene (LDPE) production capacity to Borouge’s portfolio to meet the needs of the growing wire and cable infrastructure markets
Following the successful completion of the feasibility study announced last year, Borouge, a leading provider of innovative, value creating plastics solutions, has decided to enter the FEED (front-end engineering and design) stage of its Borouge 3 project. The Company is thereby continuing with its plans to significantly expand its polyolefin operations in Abu Dhabi, in the United Arab Emirates, by adding approximately 2.5 million t/y of capacity by the 4th quarter of 2013. The expansion will enable Borouge, a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, to meet the growing demands of the high value polyethylene and polypropylene markets in the Middle East and Asia. The addition of low density polyethylene (LDPE) capacity will also enable Borouge to grow in the wire and cable infrastructure market.
“The commissioning of Borouge 3 will ensure that we benefit from the additional feedstock availability resulting from the upstream refinery and gas processing expansions of ADNOC in Ruwais,” says Abdulaziz Alhajri, Chief Executive Officer of Borouge’s Production Company. “The current Borouge 2 expansion project that will triple the manufacturing capacity of Borouge is on track for completion in 2010. The combination of these two projects will enable our significant growth in the Middle East and Asian polyolefin markets in the next decade.”
The Borouge 3 project includes the construction of an ethane cracker, second generation BorstarR polypropylene (PP) and polyethylene (PE) units, an LDPE unit and a Butene unit, as well as related off-site utilities and marine facilities, at its plant in Ruwais, some 250 kilometres west of Abu Dhabi. The addition of 2.5 million t/y of polyolefins will boost Borouge’s total production capacity to 4.5 million t/y by the end of 2013.
In addition to investing in polyolefin production capacity, Borouge is expanding its sales and marketing efforts to meet the needs of its customers in the Middle East and Asia. “We are currently investing in our capability to service our customers even better by establishing logistics hubs in Shanghai and Guangzhou in China and a 50,000 t/y compounding plant in Shanghai,” adds Chief Executive Officer of Borouge’s Marketing Company, William Yau. “We are committed to our strategy based on Value Creation through Innovation in the infrastructure, automotive and advanced packaging markets and additional logistics hubs are planned beyond China in the near future.”
“Borouge is a successful joint venture for ADNOC and we are confident in our investments in the development of Borouge’s core business while at the same time, contributing to the further growth and diversification of the Abu Dhabi economy,” says Rashed Saud Al Shamsi, Petrochemicals Director of ADNOC. “Notwithstanding the current economic climate, we remain focused on our long term strategy and, together with Borealis, are supporting Borouge’s preparation for the upswing of the global economy and market growth.”
“We welcome the opportunity to develop and enhance our successful partnership with ADNOC in supporting the growth of Borouge,” adds Henry Sperle, Borealis Executive Vice President for the Middle East & Asia. “This expansion in polyolefins capacity, based on our unique BorstarR and wire and cable technologies, underpins Borealis’ growth strategy in the Middle East and Asia. The expansion strategically builds upon our leading position in the global wire and cable infrastructure market and reinforces our product offering to this growing market."
Borouge’s current capacity is 600,000 tonnes of polyethylene per year, and the Borouge 2 expansion project will increase its capacity to 2 million t/y. Construction of Borouge 2 began in late 2007 and consists of an ethane cracker of 1.5 million t/y, an olefins conversion unit of 752,000 t/y (the world’s largest), two BorstarR PP units with a combined annual capacity of 800,000 t/y, and a BorstarR PE unit with an annual capacity of 540,000 t/y.