Borouge (Abu Dhabi / United Arab Emirates; www.borouge.com) plans to invest about USD 40m in the extension of its “Borstar” production facility at the petrochemical complex in Ruwais. The plant came on stream in 2002. The joint venture between Borealis (DK-2800 Lyngby; www.borealisgroup.com) and the national UAE oil company Abu Dhabi National Oil Company (Adnoc; www.adnoc.com) plans to expand polyolefins output from 450,000 t/y to 580,000 t/y by the second quarter of 2005. Borouge said the capacity extension is in reaction to rising demand for in the Middle East and Asia, forecast to increase by 6% to 8% annually.

Adnoc and Borealis have commissioned a feasibility study for the construction of an additional world-scale cracker and corresponding downstream polyolefins plants. The final decision on this latest project is expected in 2004 and the facility could start operation in 2008. Borouge currently operates a 600,000 t/y ethylene cracker, an HDPE plant and an LLDPE plant with an output of 225,000 t/y each at Ruwais.