28 Nov 2006

Borouge awards approximately USD 1.3 billion Borouge 2 Cracker (EU2) Contract to Linde Engineering

Borouge, the leading provider of innovative plastic solutions, today announced that it has awarded the contract to build its new ethylene cracker to Linde Engineering; the cracker will have a capacity of approximately 1.5 million tons per annum and is considered to be the largest gas cracker in the world.

The value of the contract is approximately USD 1.3Billion and is awarded on a lump sum ُEPC turn key basis. Work is expected to begin in 1st week of December 2006, and is scheduled for completion in 41 months from the effective date

This award is the first step in Borouge 2, the major expansion project being undertaken by Borouge, which will triple production capacity.

Borouge 2 is a key part of Borouge’s strategy for growth, tripling its production capacity and consolidating its position in markets throughout the Middle East, Asia-Pacific and Africa. It is expected to come on stream by 2010.

As well as the ethylene cracker, the Borouge 2 project comprises the world’s biggest olefins conversion unit, producing 752 Kilotonnes per annum and two Borstar® polypropylene plants with a combined annual capacity of 800 Kt along with a new Borstar Enhanced PE plant that will have an annual capacity of 540 Kt to compliment the existing 600Kt unit.

In addition, it will include a general Utilities and Offsite package. The award of the above 3 remaining packages is expected during first and second quarter 2007.

The new expansion will be located next to Borouge’s existing petrochemical complex in Ruwais, Abu Dhabi in the United Arab Emirates.

Reader enquiries

Borouge Pte Ltd
1 George Street
#18-01
Singapore 049145

Singapore

www.borouge.com

Notes for editors

Borouge and Borealis

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 across Europe, the Middle East and Asia. Our production facilities, innovation centres and service centres work with customers in more than 170 countries to provide the materials that make an essential contribution to society and sustainable development. We are committed to the principles of Responsible Care® and to leading the way in 'Shaping the Future with Plastics'™.

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

About Borstar®

Borstar technology is a critical element in developing the next generation of innovative, creative plastics.

Borstar is Borealis’ proprietary technology that supports differentiated PE and PP products. It enables production of tailored plastic grades that reduce costs through efficient processability. Other benefits include short start-up times, quick transitions between grades and the capacity to produce a whole range of product mix in one cycle. Borouge’s cracker and Borstar PE units consistently achieve first-time-right products with minimal downtime.

Now, Borstar PE 2G, Borealis’ next generation technology, represents a leap forward in polymer design – from bi-modal PE to multi-modal PE–facilitating the development of an ever-widening range of new plastics which outperform alternative materials in meeting the needs of manufacturers and end users.

By enabling a tailored molecular structure of PE to precisely match the application requirements, Borstar PE 2G extends the product range with more sophisticated, customer-oriented solutions characterised by an outstanding combination of mechanical properties and excellent processability.