Polymers Co Ltd's (Borouge) plan to triple its petrochemicals production capacity to 2 million metric tonnes per year is estimated to cost around $5 billion, its chief executive officer Abdul Aziz A. Al Hajri said on Sunday.
"The expansion is being funded by Borouge's owners - Adnoc and Borealis. It will be ready by the first quarter of 2010," Al Hajri told a news conference here.
"The expansion is part of our vision to become a major player in the plastic industry."
Borouge 2 is being constructed alongside Borouge's existing production facilities at Ruwais, Abu Dhabi. The EPC packages include a new ethylene cracker - the largest grass-roots cracker in the world - two Borstar polypropylene plants with an annual capacity of 800,000 tonnes, and a Borstar enhanced polyethylene plant with an annual capacity of 540,000 tonnes.
Also included is an olefins conversion unit with total annual output of 752,000 tonnes of propylene plus utilities and off sites to support the expanded production.
Borouge's current petrochemical production capacity is 600,000 tonnes per year.
"The groundbreaking on the expansion project has already started. The project is on schedule and within budget," Al Hajri said.
After the new production capacity is onstream, Borouge plans to export the bulk of its output - mainly to the Middle East, China and India.
"More than one-third of the production will be going to the Middle East market, including the local market," said Harald Hammer, chief executive officer of Singapore-based Borouge Pte Ltd, Borouge's Singapore-headquartered marketing company.