ABB Lummus and Fluor Bag FEED Contracts for Abu Dhabi $2.5 Billion Petrochem Complex

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Researched by Industrial Info Resources (Sugar Land, Texas). Four contracts for a $2.5 billion plus petrochemical complex in Ruwais, Abu Dhabi have been awarded by Borouge, which will see the 2005 production capacity of 600,000 metric tons per year expand to an annual capacity of 2 million tons per year of enhanced polyolefins by 2010.

Borouge (Abu Dhabi Polymers Company) is a joint venture between Borealis (Kongens Lyngby, Denmark) and ADNOC (Abu Dhabi National Oil Company). The Borstar proprietary technology will be used in the new complex with a 540,000 metric tons per year enhanced polyethylene unit and a 400,000 metric tons per year polypropylene unit, which will be located next to Borouge’s existing petrochemical complex in Ruwais. Demand for the existing petrochem complex’s output has outstripped supply in the past two years and has been sold-out, while the plant has run at full capacity. International Petroleum of Abu Dhabi holds 65% of Borealis and Austria’s oil and gas major, OMV, holds 35%.

Borstar PP uses a combined loop and gas-phase reactor in series for increased product flexibility, similar to the Borstar PE process. It provides easy control of the breadth of the molecular weight and conomer distribution. A second gas-phase reactor is added when targeting advanced heterophasic copolymers. The process is deigned to produce high rubber contents (25%) and can be built and operated in modular steps.

ABB Lummus (NYSE:ABB) (Zurich, Switzerland) has been awarded the front-end engineering design (FEED) contract for the 752,000 metric tons per year olefins conversion unit (OCU), which will be the world’s largest. The contract is scheduled to be executed in 32 weeks by the ABB office in Houston, Texas.

The FEED contract for the polyolefin units has been awarded to Fluor Mideast Limited (NYSE:FLR) (Aliso Viejo, California) and will take 40 weeks for completion. The work will be carried out from Flour’s offices in Haarlem, the Netherlands and Greenville, South Carolina. MWH (Broomfield, Colorado) will carry out the study of health, safety and environment impact assessments (HSEIA) for the facilities and the lenders to the project and this phase is expected to be complete by September of 2006. Maersk Logistics (Copenhagen, Denmark) was short listed as a supply chain study consultant to advise on the supply chain concept for the product output of Borouge Two, which will be marketed mainly to the Middle East and Asia Pacific regions and will target high-end applications in the added value pipe and high performance packaging areas. In 2005, Foster Wheeler International (NASDAQ:FWLT) (Clinton, New Jersey) was awarded the project management consultancy contract for the project and HSBC (city or state, United Kingdom) the financial advisory contract.

John Taylor, Borealis’ CEO, said that the Bourouge Two expansion was in line with the Abu Dhabi government’s vision to diversify its economy and encourage investment in the downstream petrochemical sector. “Once Bourouge Two is up and running, it will support a lot of petrochemical-based industries in Abu Dhabi,” he added.

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