Borouge confirms expansion

19 December 2003
Abu Dhabi Polymers Company (Borouge)confirmed on 15 December that it was to proceed with a major expansion of its Ruwais petrochemical complex. Borouge said that it would invest $40 million in debottlenecking its existing polyethylene capacity. It also said it was studying the possibility of building a new worldscale cracker to take advantage of new ethane feedstock capacity to be brought on stream under the third phase of the onshore gas development (OGD-3) and phase 2 of the Asab gas development (AGD-2 - MEED 31:10:03).

The debottlenecking programme will see polyethylene capacity rise by 130,000 tonnes a year (t/y) to 580,000 t/y and include an expansion of the material handling facilities. The project's completion by the second quarter of 2005 will result in Borouge utilising on-site the entire output of its existing 600,000-t/y cracker: at present 150,000 t/y of spare ethylene capacity is exported.

As set out in a memorandum of understanding signed by the company's shareholders, Abu Dhabi National Oil Company (ADNOC)and Copenhagen-based Borealis, Borouge said it was carrying out a technical and commercial feasibility study looking into the construction of a new ethane cracker with downstream polyolefin units. New ethane supplies from the OGD-3/AGD-2 programme will be able to support a cracker of up to 1.4 million t/y, the company added. A decision on the cracker is expected in 2004, with start-up scheduled for 2008.

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