Tecnimont Wins Borouge 4 FEED Contract

04.03.2019 -

Italian contractor Tecnimont has won another contract for Borouge in Abu Dhabi, United Arab Emirates. This time, Tecnimont will provide front end engineering and design (FEED) services for the fourth expansion of Borouge’s complex at Ruwais. The value of the contract for Tecnimont is roughly $45 million on a reimbursable basis.

Tecnimont has previously worked on Borouge’s first polyolefins complex, which was completed in 2001. Since then, it has also worked on the Borouge 2 and 3 complexes, in 2007 and 2010, respectively.

“Our strong, technological competitive edge in transforming natural resources into innovative, higher-value products enables us to be at the forefront of Abu Dhabi’s multi-billion downstream strategic investment plan,” said Pierroberto Folgiero, CEO of Maire Tecnimont.

Borouge partners Abu Dhabi National Oil Company (ADNOC) and Borealis intend to finalize the downstream configuration within three months of awarding the FEED contract. FEED services are expected to finish during 2020.

ADNOC and Borealis have also awarded a project management contract to TechnipFMC and a license contract to WorleyParsons.

The Borouge 4 complex will include a mixed feed cracker, the world’s largest with an ethylene capacity of 1.8 million t/y, using a variety of feedstocks that include ethane, butane and naphtha. Overall capacity will be 3.3 million t/y of olefins and aromatics.

Ahmed Omar Abdulla, CEO of Borouge, said the project is expected to generate more than $3.5 billion in local activities during the engineering, procurement and construction phases. He added that once operational, Borouge 4 will contribute an extra $6 billion to Abu Dhabi’s GDP.

In December 2018, Borouge started building its fifth PP plant in Ruwais. The 480,000 t/y unit, which will be integrated within Borouge 3, is scheduled to go on stream in the third quarter of 2021. It will expand Borouge’s total PP capacity by 25% to 2.24 million t/y.