Linde to Build World’s Largest Ethylene Cracker for Borouge in Abu Dhabi

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Researched by Industrial Info Resources (Sugar Land, Texas). The contract to build the world’s largest ethylene cracker has been awarded to Linde Engineering (Frankfort:LIN) (Wiesbaden, Germany) by Borouge (Abu Dhabi Polymer Company). The $1.3 billion contract, one of the largest in Linde’s history, for the 1.5 million tons per annum (mtpa) cracker is the first element in the Borouge 2 expansion project at the company’s existing petrochemical complex in Ruwais, Abu Dhabi in the UAE. The expansion project will see production capacity at the site tripled. The steam cracker will be based on ethane feedstock and its polyethylene and polypropylene output will be exported.

The Borouge project includes the world’s largest 752,000 tpa olefins conversion unit and two Borstar polypropylene plants with a combined annual capacity of 752,000 tpa and two Borstar polypropylene plants with a combined capacity of 800,000 tpa. A new Borstar enhanced PE plant will have an annual capacity of 540,000 tons and this will complement the existing 600,000 tpa unit. The complex project will also include a general utilities and offsite package. The three remaining project contract packages are expected to be awarded during the first and second quarters of 2007. Work on the Linde contract has begun this month and is scheduled for completion in mid-2010. For related news item see April 19, 2006 – ABB Lummus and Fluor Bag FEED Contracts for Abu Dhabi $2.5 Billion Petrochem Complex.

With prices for ethylene growing stronger through the end of 2006, after predictions of a flat market in mid-2006, new output coming into the market is expected to have a controlling effect on price. An additional 6 mtpa of ethylene from the Middle East and Asia is expected to start to show in the market beginning towards the end of 2007. During the period from 2007 to 2010, the output from the regions is expected to top 30 mtpa.

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