Borouge, a Joint Venture between ADNOC (Abu Dhabi National Oil Company) and Borealis, the leading provider of innovative plastics solutions, today awarded two EPC Contracts for its Borouge 2 major expansion project at its production facilities at Ruwais Abu Dhabi, U.A.E.
The EPC Contract for constructing three new Borstar Technology Polyolefins units has been awarded to M/S Tecnimont S.p.A. Italy on Lump Sum Turn Key (LSTK) basis for approximately US$1,855 Million*(One Billion, Eight Hundred and Fifty Five Million Dollars). The project will be managed from Tecnimont’s office in Milan, Italy and is scheduled for completion in 38 months including Pre-commissioning. This contract will lead to development of two new Borstar Polypropylene (PP) Plants with annual capacity of 800,000 tonnes and a new Borstar Enhanced Polyethelene (PE) plant with annual capacity of 540,000 tonnes which will compliment the existing 600,000 tonnes PE unit.
The Contract for Utilities and Offsites has been awarded to M/S Technicas Reunidas(TR), Spain on Convertible Lump Sum (C-LSTK) basis. It has an estimated final Agreement price of US$1,234 Million (One Billion, Two Hundred and Thirty Four Million Dollars). This project will be managed from TR’s office in Madrid, Spain and is scheduled for completion in 34 months including successful Test Runs. This plant will supply the utilities to all the associated packages.
Borouge has already awarded a Lump Sum Turn Key US$ 1.3 billion EPC Agreement to M/S Linde Engineering, Germany in December 2006 for construction of a new Ethylene Cracker. This contract was awarded on LSTK basis. The initial activities are already underway and it is scheduled for completion on the year 2010 as the case for all packages.
Borouge Project Management Team will manage the execution of Borouge 2 Expansion Project Packages with support of M/S Foster Wheeler as Project Management Consultant (PMC).
• This number is to be adjusted on the day of award based on the Euro/US exchange rate agreed mechanism.
