MOSCOW (MRC) -- Borouge has signed a 25-year deal for ADNOC Logistics & Services to manage integrated logistics support at the Khalifa Industrial Zone and a new hub at the port in the area, said the company.
The deal covers the transportation and handling operations for Borouge’s polymer products at Khalifa Port to export to international markets.
ADNOC is the majority shareholder in Borouge, with Austria-based Borealis holding 40% of the business. The company claimed that the deal would reduce unit costs of production by optimising manufacturing and distribution value chains.
Rainer Hoefling, CEO of Borouge, added: "Borouge 4 is fundamental to reinforcing our commitment to our global customers and milestone in our story of growth. Our new facility enables us to actively respond to the growing global demand for energy, infrastructure, advanced packaging and agriculture solutions which have a positive impact on society and the environment."
The scope of the award covers engineering, procurement, construction, and commissioning activities for the polyolefin complex facilities required to facilitate the full production capacity of two new polyethylene plants – each with a capacity of 700,000 tonnes per annum.
These plants will be supplied by a world-scale ethane cracker with capacity of more than 1.5 million tonnes per annum of ethylene.
As per MRC, Abu Dhabi National Oil Company (ADNOC) has signed of a strategic partnership with Borealis AG that confirms a USD6.2 B (AED22 B) investment agreement between the companies to build the fourth Borouge facility - Borouge 4 - at the polyolefin manufacturing complex in Ruwais, United Arab Emirates (UAE), which will produce 1.4 MM tons of polyethylene (PE) per year.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. In 2020, Borealis generated EUR 6.8 billion in sales revenue and a net profit of EUR 589 million. OMV, the Austria-based international oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu-Dhabi based Mubadala.
MRC