Unlocking new opportunities and enabling joint customer growth
Abu Dhabi, United Arab Emirates – February 26, 2019: Borouge, a leading petrochemicals company that provides innovative, value creating plastics solutions, has awarded TechnipFMC, Maire Tecnimont and WorleyParsons three major contracts for the fourth phase of the Ruwais petrochemicals complex which will include the world’s largest mixed feed cracker.
CONTRACTS SIGNING CEREMONY
In a ceremony held in Abu Dhabi, Borouge signed the FEED (Front-End Engineering and Design) contract, PMC (Project Management Contract) and License contract associated with the mixed feed cracker complex. The contracts were signed by Ahmed Omar Abdulla, CEO of Abu Dhabi Polymers Company (Borouge); Marco Villa, President EMIA, TechnipFMC and Pierroberto Folgiero, Maire Tecnimont Group Chief Executive Officer, in the presence of Abdulaziz Alhajri, Executive Director, Downstream Directorate, ADNOC; Alfred Stern, Borealis Chief Executive, and other leadership members from ADNOC, Borealis and Borouge.
The mixed feed cracker will be the 4th cracker in the Borouge complex and will be the world’s largest with 1.8 million tonnes Ethylene output. It will have overall capacity to produce 3.3 million tonnes of olefins and aromatics using a variety of feedstocks such as Ethane, Butane and Naphtha coming from ADNOC’s refinery and gas processing facilities. Both ADNOC and Borealis intend to finalise the downstream configuration within three months, following the FEED award.
MIXED FEED CRACKER: A GROWTH DRIVER OF ADNOC DOWNSTREAM AND BOROUGE 2030 STRATEGY
“The mixed feed cracker is unique as it enables many new petrochemical building blocks to be available in Ruwais for the first time, thereby transforming Ruwais into an even more advanced integrated refining and petrochemicals complex,” said Alhajri. “The new project will significantly contribute to achieving ADNOC’s growth ambitions as well as those of Borouge.”
The introduction of new and additional feedstocks and products to be produced by the plant supports the Abu Dhabi, Borouge and ADNOC 2030 strategies, by creating a platform for future industrial development and diversification of the economy and contributing to ensuring a more profitable downstream business, he added.
Stern hailed the strong partnership and long successful history that Borealis has with ADNOC at Borouge. He underlined Borealis’ continuous support to Borouge in setting up the huge downstream polyolefin’s production plants that will be based on the Borstar® technology. “The mixed feed cracker is not only a new milestone in Borouge’s history, it is also a new step forward in Borealis’ growth strategy in the Middle East. The project, which reflects the strength of our strong partnership with ADNOC, ideally embodies Borealis’ commitment and willingness to continue contributing to the development of the UAE through Borouge.”
MIXED FEED CRACKER: AN EFFICIENT ENABLER OF BOROUGE’S GROWTH AND IN-COUNTRY VALUE PROPOSITION
“We are excited to award these contracts for the mixed feed cracker project which will be a new milestone in the history of Borouge,” said Abdulla. “Having this fourth complex in our world-class petrochemicals complex, in Ruwais, brings us a step closer to achieving our 2030 growth strategy.”
One of the tangible benefits of the investment is its contribution to enhancing the In-Country Value proposition, he added. It is expected to generate over USD 3.5 billion local procurement and construction activities during its EPC (Engineering, Procurement and Construction) phase. The new project will generate new business and revenue opportunities for local companies in the UAE.
“Not only will the plant contribute to an additional USD 6 billion to Abu Dhabi’s GDP annually as direct benefit from product revenue, our new project will also create thousands of job opportunities during construction phases and once it is commissioned,” Abdulla stated.
Wim Roels, CEO of Borouge Pte Ltd, said the new polyolefins capacity resulting from the mixed feed cracker enables Borouge to expand its portfolio and ensures a long-term security of supply. “Having the new plants on stream will enable Borouge to meet the increasing demand for polyolefins in our key markets in the Middle East, Asia and Africa by expanding our product portfolio and deliver leading edge products of differentiated, innovative and sustainable plastics solutions that meet our customers’ growth ambitions.”
THE CRACKER TO BE THE FIRST OF ITS KIND IN UAE TO USE MIXED FEEDSTOCK
Since its inception Borouge has experienced formidable growth and succeeded in increasing its capacity by over 10-fold during the past 20 years. With the Mixed Feed Cracker, the company will encounter a new phase of operation processes using a mixed feedstock for its new cracker for the first time in Borouge’s history adding more value to the available Naphtha and Butane.
For further information, please contact
External Communications Manager, Borealis
T +43 1 22 400 772, email@example.com
REHAB OMAR ATEEQ
Acting Vice President Global Communications, Borouge
T +971 2 708 0807, Rehab.Ateeq@borouge.com
ADNOC is a major diversified group of energy and petrochemical companies that produces about 3 million barrels of oil and 10.5 billion cubic feet of raw gas a day. Its integrated upstream, midstream and downstream activities are carried out by 14 specialist subsidiary and joint venture companies.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With its head office in Vienna, Austria, the company currently has more than 6,800 employees and operates in over 120 countries. Borealis generated EUR 8.3 billion in sales revenue and a net profit of EUR 906 million in 2018. Mubadala, through its holding company, owns 64% of the company, with the remaining 36% belonging to Austria-based OMV, an integrated, international oil and gas company. Borealis provides services and products to customers globally, in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC) and with Bayport Polymers, a joint venture with Total and NOVA Chemicals in Texas, USA.
A joint venture between ADNOC and Borealis, Borouge is a leading petrochemicals company that provides innovative plastics solutions for the energy, infrastructure, mobility, packaging, healthcare and agriculture industries. With 4.5 million tonnes of annual capacity, Borouge is the world’s largest integrated polyolefin complex, with the ambition to more than double its current capacity by 2025.
Learn more about
ADNOC at www.adnoc.ae
Borealis at www.borealisgroup.com; www.stopoceanplastics.com; www.borealiseverminds.com
Borouge at www.borouge.com