Borouge invests $40m to enhance production

Abu Dhabi Polymers Company is investing US$40 million to boost existing Borstar enhanced polyethylene (PE) capacity.

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By  Eudore Chand Published  December 30, 2003

Abu Dhabi Polymers Company, otherwise known as Borouge, is investing US$40 million to boost existing Borstar enhanced polyethylene (PE) capacity from 450,000 to 580,000 tonnes per annum. The project, which includes expansion of material handling facilities, will be completed by the second quarter of 2005. Borouge will also assume full offtake of the existing 600,000 tonnes per annum ethylene cracker. Growing market demand for enhanced polyolefins and in the creased availability of feedstock, are pushing Borouge to expand its petrochemical complex. In order to develop Borouge’s business, its owners, ADNOC and Borealis, signed a memorandum of understanding earlier this year. The organisations are jointly proceeding with a feasibility study for a world class cracker and downstream polyolefin plant. Another feasibility study to expand the Ruwais petrochemical complex has been linked to market growth and increased gas production from two of ADNOC’s natural gas developments in Abu Dhabi. This will generate significant amounts of ethane - equivalent to approximately 1.4 million tonnes ethylene - for petrochemical use. The ongoing study is investigating technical and commercial aspects and considering the various options. Conclusions are likely to be reached during 2004 and construction on an additional plant is likely to start in 2008. “The demand for polyolefins in the Middle East and Asia is expected to grow annually between 6% and 8% until 2010 and will absorb the capacity expansions,” said Hubert Puchner, chief operating officer, Borouge, Singapore. According to Harri Bucht, chief executive officer of Borouge, the existing polyethylene plants are already exceeding their nameplate capacity. “By expanding our production, we will achieve greater cost efficiency,” he added.

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