Borouge awards contracts for world’s largest mixed feed cracker
26 FEB 2019
Borouge, a leading petrochemicals company that provides innovative, value creating plastics solutions, has awarded TechnipFMC, Maire Tecnimont and WorleyParsons three major contracts for the fourth phase of the Ruwais petrochemicals complex which will include the world’s largest mixed feed cracker.
CONTRACTS SIGNING CEREMONY
In a ceremony held in Abu Dhabi, Borouge signed the FEED (Front-End Engineering and Design) contract, PMC (Project Management Contract) and License contract associated with the mixed feed cracker complex. The contracts were signed by Ahmed Omar Abdulla, CEO of Abu Dhabi Polymers Company (Borouge); Marco Villa, President EMIA, TechnipFMC and Pierroberto Folgiero, Maire Tecnimont Group Chief Executive Officer, in the presence of Abdulaziz Alhajri, Executive Director, Downstream Directorate, ADNOC; Alfred Stern, Borealis Chief Executive, and other leadership members from ADNOC, Borealis and Borouge.
The mixed feed cracker will be the 4th cracker in the Borouge complex and will be the world’s largest with 1.8 million tonnes Ethylene output. It will have overall capacity to produce 3.3 million tonnes of olefins and aromatics using a variety of feedstocks such as Ethane, Butane and Naphtha coming from ADNOC’s refinery and gas processing facilities. Both ADNOC and Borealis intend to finalise the downstream configuration within three months, following the FEED award.
MIXED FEED CRACKER: A GROWTH DRIVER OF ADNOC DOWNSTREAM AND BOROUGE 2030 STRATEGY
“The mixed feed cracker is unique as it enables many new petrochemical building blocks to be available in Ruwais for the first time, thereby transforming Ruwais into an even more advanced integrated refining and petrochemicals complex,” said Alhajri. “The new project will significantly contribute to achieving ADNOC’s growth ambitions as well as those of Borouge.”
The introduction of new and additional feedstocks and products to be produced by the plant supports the Abu Dhabi, Borouge and ADNOC 2030 strategies, by creating a platform for future industrial development and diversification of the economy and contributing to ensuring a more profitable downstream business, he added.
Stern hailed the strong partnership and long successful history that Borealis has with ADNOC at Borouge. He underlined Borealis’ continuous support to Borouge in setting up the huge downstream polyolefin’s production plants that will be based on the Borstar® technology. “The mixed feed cracker is not only a new milestone in Borouge’s history, but it is also a new step forward in Borealis’ growth strategy in the Middle East. The project, which reflects the strength of our strong partnership with ADNOC, ideally embodies Borealis’ commitment and willingness to continue contributing to the development of the UAE through Borouge.”
MIXED FEED CRACKER: AN EFFICIENT ENABLER OF BOROUGE’S GROWTH AND IN-COUNTRY VALUE PROPOSITION
“We are excited to award these contracts for the mixed feed cracker project which will be a new milestone in the history of Borouge,” said Abdulla. “Having this fourth complex in our world-class petrochemicals complex, in Ruwais, brings us a step closer to achieving our 2030 growth strategy.”
One of the tangible benefits of the investment is its contribution to enhancing the In-Country Value proposition, he added. It is expected to generate over USD 3.5 billion local procurement and construction activities during its EPC (Engineering, Procurement and Construction) phase. The new project will generate new business and revenue opportunities for local companies in the UAE.
“Not only will the plant contribute to an additional USD 6 billion to Abu Dhabi’s GDP annually as direct benefit from product revenue, our new project will also create thousands of job opportunities during construction phases and once it is commissioned,” Abdulla stated.
Wim Roels, CEO of Borouge Pte Ltd, said the new polyolefins capacity resulting from the mixed feed cracker enables Borouge to expand its portfolio and ensures a long-term security of supply. “Having the new plants on stream will enable Borouge to meet the increasing demand for polyolefins in our key markets in the Middle East, Asia and Africa by expanding our product portfolio and deliver leading edge products of differentiated, innovative and sustainable plastics solutions that meet our customers’ growth ambitions.”
THE CRACKER TO BE THE FIRST OF ITS KIND IN UAE TO USE MIXED FEEDSTOCK
Since its inception Borouge has experienced formidable growth and succeeded in increasing its capacity by over 10-fold during the past 20 years. With the Mixed Feed Cracker, the company will encounter a new phase of operation processes using a mixed feedstock for its new cracker for the first time in Borouge’s history adding more value to the available Naphtha and Butane.