Borealis (Vienna / Austria; www.borealisgroup.com) and the International Petroleum Investment Co (IPIC, Abu Dhabi / UAE; www.ipic.ae) are planning a multi-billion dollar chemicals project in Abu Dhabi / UAE. The plans includes a naphtha cracker with downstream propylene and ethylene derivatives plants and a reformer with xylene, benzene, cumene, phenol and derivatives units.

The companies have signed a memorandum of understanding with the Abu Dhabi Investment Council to prepare for the first phase of the project, which they expect to complete in 2013. On completion of phase one, the complex will be the largest and most integrated of its kind in the world, supporting the Abu Dhabi government’s strategy of diversifying its economy, Borealis and IPIC, its parent company, said in a joint statement. IPIC holds 65% stake in Borealis, and Austria’s OMV holds the remainder.

Mark Garrett, Borealis’ CEO, said the investment is part of the company’s strategy to develop significantly its base chemicals business.Borealis already has production in the UAE through its Borouge joint venture with Abu Dhabi National Oil Co (ADNOC). Borouge is expanding its complex in Ruwais, Abu Dhabi – see Plasteurope.com of 24.04.2007.