Borouge awards $300mn gas unit deal

Abu Dhabi Polymers Company (Borouge) on Wednesday awarded a $300 million contract for the construction of a new gas conversion unit.

The contract with Samsung Engineering is part of a major expansion of the plastics company’s production facilities in Ruwais, Abu Dhabi.

The expansion project, Borouge 2, will increase the plastics manufacturer’s annual production capacity to two million tonnes of polyolefins - among the most widely used plastics today - including for the first time, polypropylene.

The new olefins conversion unit (OCU) will convert ethylene into propylene to feed two new polypropylene plants.

Work on the OCU will begin later this month and is scheduled to be completed by mid-2010.

“With the technology of this olefin conversion unit Borouge is leading the way in producing propylene monomer to meet the rising demand for Borstar high performance polypropylene in key markets,” said Harri Bucht, chief executive of the Borouge production company.

Earlier this month Borouge, which is part-owned by Abu Dhabi National Oil Company (ADNOC), signed two contracts worth $3.1 billion for the expansion of its production facilities.

The first $1.855 billion deal was with Italian engineering and construction firm Tecnimont for the development of three new polyolefins units and associated material handling facilities, laboratory facilities and marine works.

The second contract, worth $1.23 billion, was with Spanish engineering company Tecnicas Reunidas for the construction of offsite and utility facilities for the expanded plant.

Borouge began the expansion project in January, signing a $1.3 billion contract with Germany-based Linde Engineering for the construction of a new ethylene cracker.

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