Borouge Awards $3 Billion Contracts for Ruwais 2 and Adds 80,000-Ton Melamine Plant

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Researched by Industrial Info Resources (Sugar Land, Texas). Borouge (Abu Dhabi) has announced that it will continue with the construction of a new melamine plant in Ruwais, Abu Dhabi, at the location of its existing world scale polymer production facilities. The company is planning to take over a project currently being undertaken by the Abu Dhabi National Oil Company (ADNOC) and AMI Agrolinz Melamine International (AMI) (Linz, Austria) in Ruwais. Borouge is a joint venture between ADNOC and Borealis (Vienna, Austria).

The development would see the creation of a melamine plant with an annual production capacity of 80,000 tons. The front-end engineering design phase has begun and it is expected that the production will come on stream following the completion of Borouge 2, the major expansion that will triple Borouge’s Borstar polyolefin production capacity. For related news item, see December 11, 2006 – Linde to Build World’s Largest Ethylene Cracker for Borouge in Abu Dhabi.

Increasing global demand for melamine, which is used in a wide range of manufacturing, domestic and lifestyle sectors, is particularly strong in the Middle East and Asia Pacific regions. This presents Borouge with an opportunity to broaden its product portfolio in line with its strategy to explore expansion opportunities. The new plant will benefit from the close proximity to Borouge’s Ruwais facilities, from synergies with existing operations and from the company’s production expertise and operational track record.

In the second week of April two contracts worth $3 billion were awarded by Borouge for Borouge 2. Technimont SpA (Italy) won the $1.855 billion contract for the construction of three new Borstar polyolefin units (800,000 tons per annum), a new 540,000 ton polyethylene plant to complement the existing 600,000 ton unit and associated material handling facilities, laboratory facilities and marine works. A $1.2234 billion contract was awarded to Tecnicas Reunidas (Spain) on a convertible lump sum basis to construct the offsite and utility facilities for the expanded plant and to be completed in 2010.

In December 2006, it was announced that AMI shares would be moved to Borealis by Abu Dhabi’s IPIC (International Petroleum Investment Company) and OMV (Vienna), the Austrian oil and gas group. Now as a subsidiary of Borealis, AMI will provide its proprietary melamine technology and market know-how to Borouge for the project.

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