Borouge has formally signed contracts valued at approximately $3.1 billion for Borouge 2, the major expansion project at the company’s production facilities in Ruwais, Abu Dhabi, in the UAE.

The company also awarded a contract worth approximately $300 million for the construction of a new olefins conversion unit (OCU) to Samsung Engineering for Borouge 2.
The unit, which will convert ethylene into propylene to feed two new Borstar technology polypropylene plants, will be the world’s largest using ABB Lummus-licensed technology.  Total annual output from the OCU will be 791,000 tonnes comprising 752,000 tonnes of propylene and 39,000 tonnes of butane-1.  Work on the OCU began in late June and is scheduled to be completed by mid-2010.
At a ceremony held at Borouge’s new headquarters in Abu Dhabi, contracts were signed by Harri Bucht, CEO of Borouge production company, Fabrizio Di Amato, chairman of Tecnimont SpA. of Italy, and Juan Ilado Arburua, vice chairman and CEO of Tecnicas Reunidas S.A. of Spain.
The contract with Tecnimont SpA., worth approximately $1.85 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 lumpsum turnkey basis.
The contract with Tecnicas Reunidas SA, worth an estimated value of $1.23 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 began immediately and both contracts are scheduled to be completed in 2010.
Bucht commented that the agreements marked a major step forward in Borouge’s expansion plans and signing the contracts laid down a path to tripling its production capacity by 2010.
The Borouge 2 project will increase Borouge’s annual production capacity to two million tonnes of polyolefins, including for the first time, polypropylene.
Hammer said market acceptance of the Borstar range since Borouge’s inception in 1998 had 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,” he remarked.
In January 2007, Borouge began the first stage of the construction process, when it formally signed a $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.