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.