Borouge Awards Expansion EPC Contracts To Tecnimont, Tecnicas Reunidas

Borouge on 12 April announced it had awarded two major engineering, procurement and construction (EPC) contracts valued at some $3bn for its Borouge 2 expansion project. Italy’s Tecnimont won a $1.855bn contract for the construction of three new Borstar technology polyolefins units and associated material handling facilities, laboratory facilities and marine works on a lump-sum turnkey basis. A second $1.234bn contract was awarded to Tecnicas Reunidas of Spain on a convertible lump-sum basis to construct the offsite and utility facilities for the expanded plant. The first contract will see the development of two Borstar polypropylene plants with a combined capacity of 800,000 tons/year and a new Borstar Enhanced polyethylene plant with an annual capacity of 540,000 t/y to complement the existing 600,000 t/y unit. Preliminary work on the polyolefins unit will begin immediately and is scheduled to be completed in 2010. The second contract will supply utilities to all the associated EPC packages for the Borouge 2 project. Preliminary work will begin immediately and is also scheduled to be completed in 2010. The 1.5mn t/y ethylene cracker contract was awarded to a consortium comprising Linde and CCC in February (MEES, 12 February).Borouge is a joint venture between ADNOC and Denmark’s Borealis (MEES, 4 December 2006).

Borouge To Take Over Melamine Project

Borouge announced on 10 April it was planning to take over the melamine project being undertaken by ADNOC and AMI in Ruwais. The project envisages a plant with an annual production capacity of 80,000 t/y. The front-end engineering and design phase has begun and it is expected that production will come on-stream following the completion of Borouge 2. “The development of a melamine plant within Borouge would represent a rational step for its owners, ADNOC and Borealis. As announced in December 2006, AMI’s shares are planned to be contributed to Borealis by its current owners, the International Petroleum Investment Company (IPIC) of Abu Dhabi, and OMV. AMI, as a subsidiary of Borealis, will provide its own proprietary melamine technology and market know-how to Borouge for the project,” Borealis said.