$600 Million Deal for Abu Dhabi Polymers Company Limited (Borouge) Ethylene Plant

Strategic Insights -

The Abu Dhabi Polymers Company Limited (Borouge), a joint venture between The Abu Dhabi National Oil Company (ADNOC) and Borealis, has announced a deal worth over USD600 million to build an ethylene plant in the United Arab Emirates. The plant, expected to start construction in the first half of 1999 and complete by 2001, will have a production capacity of 600,000 tonnes per year. This project is part of Borouge's expansion plans, which include the setup of a sales and marketing company, Borouge Pte Ltd, in Singapore for pre-marketing of Borouge products in the Middle East, Asia, China, and the Asia Pacific.

Key Takeaways:

  • The deal to build the Abu Dhabi Polymers Company Limited (Borouge) ethylene plant is worth over USD600 million.
  • The plant will have a production capacity of 600,000 tonnes per year and is expected to start construction in the first half of 1999, with completion scheduled for 2001.
  • Borouge, a 60:40 joint venture between The Abu Dhabi National Oil Company (ADNOC) and Borealis, is part of the deal, and the plant will supply feedstock to two polyethylene plants and ADNOC's planned ethylene di-chloride (EDC) plant.
  • Denmark-based Borealis is 50% owned by Norway's Statoil with the remaining 50% split between Austria's OMV and IPIC, Abu Dhabi's state-owned company for foreign investment.
  • ABL is a joint venture between construction and engineering companies Linde AG of Germany and Eastern Bechtel Co Ltd of the United States.
  • Borouge has set up a sales and marketing company, Borouge Pte Ltd, in Singapore for pre-marketing of Borouge products in the Middle East, Asia, China, and the Asia Pacific.
  • The plant will use Borstar, the Borealis proprietary technology.

Statistics:

  • USD600 million: the value of the deal
  • 600,000 tonnes per year: the production capacity of the ethylene plant
  • 1999: the year construction is expected to start
  • 2001: the year construction completion is scheduled
  • 60% and 40%: the ownership split of Borouge between The Abu Dhabi National Oil Company (ADNOC) and Borealis, respectively

Sources:

  • A Borouge statement
  • The Abu Dhabi National Oil Company (ADNOC)
  • Borealis
  • Alliance Bechtel/Linde (ABL)
  • Linde AG
  • Eastern Bechtel Co Ltd
  • Borouge Pte Ltd