Tecnimont JV wins $1.65bn Borouge deals
Rome, May 27, 2010
A joint venture of Italy-based Tecnimont and South Korea's Samsung Engineering has won two contracts worth $1.65 billion for the Borouge 3 expansion project in Abu Dhabi.
Borouge is a joint venture between the Abu Dhabi National Oil Company (Adnoc) and Borealis, a leading international producer of chemical and plastics solutions.
Borouge has awarded two out of the three packages for the 'Borouge3' Project to the joint venture. Tecnimont has a 55 per cent share in the joint venture, while Samsung Engineering has 45 per cent.
Tecnimont’s share of the contracts is about $910 million, a company statement said.
The two EPC lumpsum turnkey contracts cover the multiple polyolefin units package ('PO', which includes two LL/HD-PE units and two PP units) and the low density polyethylene package ('LDPE'). The EPC phase is scheduled to be completed at the beginning of 2014 and the contract will be effective from June 2010.
Tecnimont was the main contractor for the polyolefin unit for Borouge 1, completed in 2001. In 2007 Tecnimont was awarded the polyolefin units (PO) for the first phase of the Borouge expansion ('Borouge 2'), which will be completed in the third quarter of 2010, as well as the debottlenecking of Borouge 1 process lines. Furthermore, in 2009 Tecnimont was awarded the FEED contracts for the entire Borouge 3 Project, activity successfully completed at beginning of 2010.
The LLD/HD-PE units and PP units included in the 'PO' Package of Borouge 3 Project will utilise Borealis Borstar technology. The two LLD/HD-PE plants will have a capacity of 540,000 tonnes per year (tpy) each, while the two PP plants will have a maximum capacity of 480,000 tpy each. The LDPE unit of the 'LDPE' package will utilise Lyondellbasell LupoTech T process, associated with Borealis’ LDPE W&C (Wire and Cable) process and will have a capacity of 350,000 tpy. - TradeArabia News Service