Borouge, a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, has signed a service contract with Singapore's CWT Logistics Pte. Ltd. to establish Borouge South East Asia (SEA) Logistics Hub. This hub - company's third in the Far East - has been formed with a purpose to ensure local logistics services for Borouge's customers in Asia for duration of 10 years with effect from its operational start-up date in 2010. As per the contract, CWT Logistics will undertake the design, development and construction of a Packaging Facility, together with providing dedicated existing state-of-the-art Warehouse Facilities at the Singapore Commodity Hub for the storage of Borouge Products. In addition, CWT Logistics will also be providing packaging services and an integrated container depot so as to handle a total annual volume of approximately 330,000 tons of polyolefins dispatched by Borouge from Abu Dhabi in the United Arab Emirates (UAE) to the South East Asia (SEA) logistics hub.
Borouge currently produces 600,000 tpa of Borstar® polyethylene per year in the UAE which is set to capacity will increase to 2 mln tpa by the middle of 2010 as the part of ongoing Borouge 2 project expansion. The expansion will add polypropylene to the product mix. Construction of the Borouge 2 facility has already started and consists of a 1.5 mln tons ethane cracker, the world's largest olefins conversion unit (with a capacity of 750,000 tons), two Borstar® polypropylene plants with a total capacity of 800,000 tons and a 540,000 tons Borstar® polyethylene plant.