Borouge scouts for Ruwais O&U contractors

13 April 2006

Abu Dhabi Polymers Company (Borouge) has invited companies to express interest by mid-April for the engineering, procurement and construction (EPC) contract covering the offsites and utilities (O&U) package on the $3,500 million expansion of its Ruwais petrochemicals complex. A tender for the contract is due to be issued by the third quarter (MEED 10:2:06).

The expansion involves the construction of a 1.4 million-tonne-a-year (t/y) ethane cracker and will also entail the construction of one 540,000-t/y polyethylene (PE) unit, two 400,000-t/y polypropylene (PP) units and a 752,000-t/y olefins conversion unit (OCU). The expansion is being carried out in five main packages - ethane cracker; OCU; O&U; PE/PP units; and marine works.

Bidding for the cracker package will be carried out in four stages. Under stages 1 and 2, technical bids for the process technology sub-package are now due to be submitted by the extended deadline of 15 May, to be followed a week later by the detailed list of equipment. On 29 May, contractors have been invited to submit material takeoff and unpriced commercial bids. Commercial bids for the overall cracker package, worth $900 million-1,100 million, are due to be submitted in late September.

Borouge has tendered the package on an open book with cost plus basis, which will be converted to lump-sum eight-10 months into the project's execution. The basic and detailed engineering and parts of the material takeoff, however, will be carried out on a fixed lump-sum basis.

All five members of theethylene club have been invited to bid for the contract, but not all are expected to participate in the tender. The prospective bidders include: Germany's Linde; US-based ABB Lummus Global, with Italy's Snamprogetti; Paris-based Technip; and the US-based Shaw Group.ABB is carrying out the 32-week, front-end engineering and design (FEED) and technology contract for the OCU unit. US-based Fluor Corporation is carrying out the 40-week FEED contract covering the complex's PP and PE units and is also the overall project manager. On completion in 2009, the expansion will triple Borouge's PP and PE capacity to 2 million t/y. Borouge is a 60:40 joint venture of Abu Dhabi National Oil Company (ADNOC) and Copenhagen-based Borealis.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications