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  • Corporate News 2 July 2009

Joint press release from Borouge and The Linde Group: Borouge awards USD 1.075 billion contract for ethane cracker in Abu Dhabi to The Linde Group

Corporate News

  • Borouge awards contract for construction of an ethane cracker worth USD 1.075 billion to The Linde Group

  • Third ethane cracker in Abu Dhabi, also one of the world's largest, will have an annual production capacity of 1.5 million tonnes of ethylene

  • Contract marks the first major milestone and confirms Borouge's commitment to its Borouge 3 expansion 

Abu Dhabi/Munich, 2 July 2009 - Borouge, a leading provider of innovative, value creating plastics solutions, has awarded a contract worth USD 1.075 billion to The Linde Group, a world leading gases and engineering company, to build another 1.5 million tonnes per year (t/y) ethane cracker at its production site in Ruwais, Abu Dhabi, United Arab Emirates. 

"The awarding of this contract confirms Borouge's commitment to the Borouge 3 project, a major expansion of our production facility in Ruwais, which will increase the total capacity of the plant to 4.5 million tonnes of polyolefins annually by the end of 2013," says Abdulaziz Alhajri, CEO of Abu Dhabi Polymers Company (Borouge). "In addition to the ethane cracker, the expansion includes the construction of second generation Borstar® polypropylene and polyethylene units, a low density polyethylene unit and a Butene unit, as well as related off-site utilities and marine facilities." 

"Nowhere else in the world has a petrochemical company installed so much olefins capacity in such a short time as Borouge is currently doing in Abu Dhabi," says Dr Aldo Belloni, member of the Executive Board of Linde AG. "We at Linde Engineering are proud to be the supplier of ethylene technology for the Ruwais complex. Our relationship with ADNOC, enriched by our gases joint venture 'Elixier', and Borealis is now stronger than ever, thus making The Linde Group the leading gases and engineering company in the Middle East." 

The contract will be executed on a 'lump sum turnkey' basis whereby the construction work will be executed by the Consolidated Contractors Company (CCC). The new cracker, the third of its kind to be built by The Linde Group for Borouge in one decade, complements the 600,000 t/y and 1.5 million t/y ethane crackers, the latter of which is currently under construction as part of the plant's expansion from 600,000 to 2 million t/y of polyolefins by mid-2010, and ultimately 4.5 million tonnes of polyolefins annually by 2013. 

After completion of the new cracker, Borouge will have the world's largest ethane cracker complex, setting a new benchmark for the industry. 

Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC), one of the world's largest oil and gas companies, and Borealis, a leading provider of chemical and innovative plastics solutions. The awarding of the contract is a major milestone in the Company's growth strategy in the infrastructure, automotive and advanced packaging markets in the Middle East and Asia, and is an important step in the development of the Abu Dhabi petrochemicals landscape.  

Borouge and Borealis are leading providers of innovative, value creating plastics solutions. With more than 40 years of experience in polyolefins and using our unique Borstar® technology, we focus on the infrastructure, automotive and advanced packaging markets. We have production facilities, innovation centres and service centres across Europe, the Middle East and Asia Pacific and work with customers in more than 170 countries around the world to provide plastic materials that make an essential contribution to society and to sustainable development. We are committed to the principles of Responsible Care® and to leading the way in 'Shaping the Future with Plastics(TM)'. 

For more information on Borealis and Borouge, a joint venture between Borealis and the Abu Dhabi National Oil Company (ADNOC), visit www.borouge.com and www.borealisgroup.com  

The Linde Group is a world leading gases and engineering company with almost 52,000 employees working in around 100 countries worldwide. In the 2008 financial year it achieved sales of EUR 12.7 billion. The strategy of The Linde Group is geared towards sustainable earnings-based growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment - in every one of its business areas, regions and locations across the globe. Linde is committed to technologies and products that unite the goals of customer value and sustainable development. 

For more information, see The Linde Group online at http://www.linde.com  


For additional information:

Borouge
Craig Halgreen
Vice President Global Communications
Telephone: +971.2.6070-807
Email craig.halgreen@  

 
The Linde Group

Press
Stefan Metz
Telephone: +49.89.35757-1322
Email stefan.metz@ 

Investor Relations
Robert Schneider
Telephone: +49.89.35757-1332
Email robert.scheider@

 
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