UAE’s Borouge awards EPC contract for its 4th petrochem complex in Ruwais

By Arya M Nair, Official Reporter
  • Follow author on
Borouge image
Representational image

Borouge, UAE’s leading petrochemical company providing innovative, value-creating polyolefin solutions, announced the award of the Engineering, Procurement and Construction (EPC) contracts for the world-scale fourth expansion of its manufacturing complex in Ruwais, Abu Dhabi (Borouge 4).

ADNOC and Borealis AG recently announced a strategic partnership, confirming a $6.2 billion investment for the development of Borouge 4. Borouge’s commitment to unlocking opportunities in polyolefin production, enabling industrial growth, and maximizing the value of every barrel produced in Abu Dhabi is reflected in the EPC award.

With this expansion, Borouge will become the world’s largest single-site polyolefin complex. The facility will also enable the next phase of growth at the Ruwais Industrial Complex by supplying feedstock to the TA’ZIZ Industrial Chemicals Zone. Borouge undertook a front-end engineering design (FEED) and a competitive tender process; as part of the process leading up to the EPC awards.

The first package for Early Works was awarded to Al Asab General Transport and Contracting LLC, a leading Abu Dhabi-based construction company. The Early Works package covers engineering, procurement and construction related to site preparation and early works of the world-scale expansion.

Hazeem Sultan Al Suwaidi
Hazeem Sultan Al Suwaidi
CEO – Borouge

“Borouge 4 is a key contributor to advancing the UAE’s ambitions for economic diversification, helping boost exports to customers globally. The growth in our world-scale complex will further strengthen Borouge’s international presence and enhance our In-Country Value. We are confident that Borouge 4 will be setting a new precedent that builds on our great successes over the last two decades and instrumental in realizing our 2030 growth strategy and sustainability targets.”

The second package of Borouge 4 was awarded to French construction giant, Technip Energies, in consortium with Target Engineering, to build the Ethane Cracker. This is Borouge’s fourth cracker with a manufacturing capacity of 1.5 million tons of ethylene output per annum.

The last three packages were awarded to Italian industrial engineering company, Tecnimont,­ to build Borouge 4’s two new polyethylene manufacturing plants and the 1-hexene unit, a component in the production of high-performance polyethylene.

The fourth package is for utilities and offsites, which consists of constructing non-process buildings, roads, infrastructure, internal and external interfaces, tankage systems, flaring systems, utilities and integration of Borouge 4 with the existing facilities. The fifth package is for building the second cross-linkable polyethylene (XLPE) plant with a capacity of 100 thousand tons per annum.

The value of the contracts will contribute to UAE In-Country Value, with 60 percent of all engineering, procurement, commissioning, and construction activities managed by local companies and locally manufactured products, and materials. The award supports ADNOC’s In-Country Value (ICV) program and highlights how Borouge and its shareholders continue to focus on ICV as it delivers on its 2030 strategy.

Related: Kuwait’s KOC awards digital oilfield contract to US-based Weatherford