Borouge, a joint venture of Abu Dhabi National Oil Co, or ADNOC, and chemical and plastics solutions provider Borealis, Thursday said that it has awarded a contract worth US$1.075 billion to German gases and engineering company Linde Group (LIN) to build another 1.5 million tonnes per year ethane cracker at its production site in Ruwais, Abu Dhabi, United Arab Emirates.
The company said the ethane cracker would be the third one in Abu Dhabi and one of the largest in the world. After the completion of the new cracker, Borouge will have the world's largest ethane cracker complex, setting a new benchmark for the industry, it said in a statement.
Borouge said that the contract would be executed on a 'lump sum turnkey' basis whereby the construction work will be executed by the Consolidated Contractors Co., or CCC. The new cracker complements Borouge's 600,000 tonnes per year and 1.5 million tonnes per year ethane crackers. The latter is currently under construction as part of the plant's expansion from 600,000 to 2 million tonnes per year of polyolefins by mid-2010, and ultimately 4.5 million tonnes of polyolefins annually by 2013.
Commenting on the contract, Abdulaziz Alhajri, Chief Executive Officer of Abu Dhabi Polymers Company, said, "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."
"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," Aldo Belloni, member of the Executive Board of Linde, stated.
Borouge and Borealis, with more than 40 years of experience in polyolefins and using its Borstar technology, focus on the infrastructure, automotive and advanced packaging markets. The companies 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.
Linde Group has almost 52,000 employees working in around 100 countries worldwide. In fiscal 2008, the company achieved sales of EUR 12.7 billion.
On June 23, Linde said that the construction of a plant to convert landfill gas into clean vehicle fuel is nearing completion at the Altamont Landfill near Livermore, California. The project is a joint venture between Linde North America and Waste Management, Inc. (WMI).
The companies are installing systems to purify and liquefy landfill gas, a source of renewable biomethane fuel. When the plant begins operating later this year, it is designed to produce up to 13,000 gallons a day of liquefied natural gas that could fuel hundreds of waste collection trucks in California.
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