ABU DHABI, 5th December, 2021 (WAM) -- Borouge, a leading petrochemical company providing innovative, value-creating polyolefin solutions, announced Sunday the award of the Engineering, Procurement and Construction (EPC) contracts for the world-scale fourth expansion of its manufacturing complex in Ruwais, Abu Dhabi (Borouge 4).
ADNOC and Borealis AG recently signed a strategic partnership that confirms a US$6.2 billion (AED22 billion) investment agreement to build Borouge 4.
The EPC award underscores Borouge's drive to unlock opportunities in polyolefin manufacturing, enable industrial growth, and maximise the value of every barrel produced in the Emirate of Abu Dhabi.
With this expansion, Borouge will become the world's largest single-site polyolefin complex. The facility will also enable the next phase of growth at the Ruwais Industrial Complex by supplying feedstock to the TA'ZIZ Industrial Chemicals Zone.
Borouge undertook a front-end engineering design (FEED) and a competitive tender process; as part of the process leading up to the EPC awards.
The details of the contracts awards are as follows:
The first package for Early Works, was awarded to Al Asab General Transport and Contracting LLC, a leading Abu Dhabi-based construction company. The Early Works package covers engineering, procurement and construction related to site preparation and early works of the world-scale expansion.
The second package of Borouge 4 was awarded to French construction giant, Technip Energies, in consortium with Target Engineering, to build the Ethane Cracker. This is Borouge's fourth cracker with a manufacturing capacity of 1.5 million tonnes of ethylene output per annum.
The last three packages of Borouge 4 were awarded to Italian industrial engineering company, Tecnimont:
The third package is for polyethylene and 1-hexene units covering the build of Borouge 4's two new polyethylene manufacturing plants and 1-hexene unit; a component in the production of high-performance polyethylene.
The fourth package is for utilities and offsites, which consists of constructing non-process buildings, roads, infrastructure, internal and external interfaces, tankage systems, flaring systems, utilities and integration of Borouge 4 with the existing facilities.
The fifth package is for building the second cross-linkable-polyethylene (XLPE) plant with a capacity of 100 thousand tonnes per annum.
The value of the contracts will contribute to UAE In-Country Value, with 60 percent of all engineering, procurement, commissioning, and construction activities managed by local companies and locally manufactured products, and materials. The award supports ADNOC's In-Country Value (ICV) programme and highlights how Borouge and its shareholders continue to focus on ICV as it delivers on its 2030 strategy. As part of Borouge 4's ICV contribution, the facility will create more job opportunities for UAE nationals in the private sector and promote economic diversification.
Hazeem Sultan Al Suwaidi, CEO of Abu Dhabi Polymers Company (Borouge), said, "Borouge 4 is a key contributor to advancing the UAE's ambitions for economic diversification, helping boost exports to customers globally. The growth in our world-scale complex will further strengthen Borouge's international presence and enhances our In-Country Value. We are confident that Borouge 4 will be setting a new precedent that builds on our great successes over the last two decades, and instrumental in realising our 2030 growth strategy and sustainability targets."
Rainer Hoefling, CEO of Borouge Pte, commented, "Borouge 4 is fundamental to reinforcing our commitment to our global customers and milestone in our story of growth. Our new facility enables us to actively respond to the growing global demand for energy, infrastructure, advanced packaging and agriculture solutions which have a positive impact on society and the environment."
The scope of the award covers engineering, procurement, construction, and commissioning activities for the polyolefin complex facilities required to facilitate the full production capacity of two new polyethylene plants - each with a capacity of 700,000 tonnes per annum, using the third generation of Borealis Borstar technology. These plants will be supplied by a world-scale ethane cracker with capacity of more than 1.5 million tonnes per annum of ethylene.
Borouge 4 will have an industry-leading focus on sustainability leveraging the capabilities of both shareholders. The facility will utilise Borealis' proprietary Borstar technology, to produce a product portfolio focused on durable applications for energy, infrastructure, advanced packaging and agriculture sectors. This unique technology, in combination with Hexene co-monomer, will enable the production of advanced packaging grades with up to 50 percent recycled polyethylene content.
Subject to the successful conclusion of a study for a Carbon Capture unit that would reduce CO2 emissions by 80%, the unit could be operational at the start-up of Borouge 4. The facility is also designed to capitalise upon ADNOC's recent initiatives on clean energy, decarbonising its power supply through access to Abu Dhabi's clean power sources. These initiatives are aligned with the UAE Net Zero by 2050 Strategic Initiative.
Borouge 4 will boost the company's annual polyolefin production to 6.4 million tonnes, representing a fourteenfold increase in the overall production capacity since the first Borouge facility, producing 450,000 tonnes of polyethylene per annum was commissioned in 2001. Borouge's value-add materials are used to manufacture a diverse range of products including industrial-grade pipes, cables, films and personal protective equipment.