Sign In
Back Print

Borouge to expand existing Borstar® 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 feasibility study to expand the Ruwais petrochemical complex is linked to market growth and increased gas production in the region from two ADNOC natural gas developments (OGD-3 and AGD-2) in Abu Dhabi. Significant amounts of ethane equivalent to approximately 1.4 million tonnes ethylene will become available for petrochemical use. The ongoing study is investigating technical and commercial aspects and considering the various options. Conclusions are likely to be reached 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 6% and 8% until the year 2010 and will absorb the announced capacity expansions”.

“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.”

The expansion plans represent a further strengthening of the partnership between ADNOC and BOREALIS. The partners bring complimentary strengths to the Borouge 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 ADNOCs 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. Borealis and Borouge adopt complementary differentiation strategies with a common focus on enhanced/ high performance polyolefins based on Borstar technology.


  All News >>