Jul 17, 2017

Abu Dhabi National Oil Company and Borealis agree deal to advance downstream projects

Middle East
Oil & Gas
James Henderson
3 min
The Abu Dhabi National Oil Company (ADNOC) and Borealis have signed an agreement to advance two key projects and expand both parties’ downs...

The Abu Dhabi National Oil Company (ADNOC) and Borealis have signed an agreement to advance two key projects and expand both parties’ downstream petrochemicals businesses. 

The agreement was signed by H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of ADNOC and Mark Garrett, Borealis Chief Executive.

Earlier this month, ADNOC announced the expansion of its strategic partnership model to span the Group's entire value chain as well as the more active management of its portfolio of assets.

Under the agreement, ADNOC and Borealis will move to the pre-feed (front end engineering and design) stage for the construction of the Borouge 4 complex, which encompasses a world-scale, mixed feedstock cracker, using existing feedstock available in Abu Dhabi and downstream derivatives units for both polyolefin and non-polyolefin products.

The proposed Borouge 4 complex is slated to come on stream around 2023 and will be integrated with ADNOC's Takreer refinery.

Simultaneously, the companies have agreed to commence engineering, procurement and construction tendering for an additional polypropylene plant (PP5) based on Borealis proprietary Borstar technology.

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The plant, to be integrated with the existing Borouge 3 complex, will add value to the surplus propylene available from Takreer's new Propane DeHydrogenation (PDH) unit, producing around 0.5 million tonnes per annum of polypropylene.

H.E. Dr Sultan Jaber, Group CEO of ADNOC, said: “We are committed to realising downstream growth and stretching the value from every barrel of oil we produce. Today's agreement with Borealis marks an important milestone in two key projects that support our smart growth and partnership strategy."

“ADNOC is determined to work with like-minded partners, such as Borealis, as we deliver on our 2030 strategy and unlock and create long-term, sustainable value for the UAE.

“The Borouge 4 complex and polypropylene plant will allow us to grow our current petrochemical production to almost 10 million tonnes per year, enabling us to take advantage of the market opportunities we have identified, particularly in Asia, where the high-grade polymer market is set to double by 2040.”

The Borouge joint venture was established in 1998 and production has progressively ramped up with the consecutive completions of the Borouge 1, 2 and 3 complexes. Current production capacity is 4.5 million tonnes per year, following the successful start-up of Borouge 3 in 2016.

The framework agreement also identifies that ADNOC and Borealis will review the extension of their successful Borouge joint venture beyond its first 30-year lifetime.

As part of its 2030 strategy, ADNOC aims to expand petrochemical production from 4.5 to 11.4 million tonnes per year by 2025

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Jun 8, 2021

Hydrogen Map shows 57 projects are operational globally

Hydrogen
Energytransition
zerocarbon
PillsburyLaw
Dominic Ellis
2 min
Western Europe and Asia Pacific are driving growth, but US projects are rising, according to Pillsbury Law's Hydrogen Map  

Pillsbury Law has created The Hydrogen Map which tracks more than 200 blue and green projects globally.

Currently there are 57 projects operational and a further 58 will be in development by the end of 2021. Construction of another 92 are slated to begin in the next decade. 

Western Europe and Asia Pacific, which account for more than 83% of known low-carbon hydrogen projects, are driving growth, but US projects are rising. The US is well positioned to lead the green hydrogen economy due to the abundant, low cost renewable energy sources needed to produce it, such as wind, solar, hydropower and nuclear, according to McKinsey.

Green hydrogen projects, which generate hydrogen using zero-carbon sources such as renewables or nuclear power, currently dominate the market, with 52 operational projects.

A hydrogen production facility being built at the Tabangao refinery in Batangas, Philippines is slated to be the first to generate blue hydrogen, in which hydrogen is produced using fossil-fueled sources but the resulting carbon emissions are captured, stored or reused. 

"Low carbon hydrogen and ammonia production is the key to decarbonising the hard-to-decarbonise sectors like transportation, industry and buildings”, said Pillsbury energy partner and Deputy Energy Industry Group leader Elina Teplinsky

"This map will be a helpful tool for a broad audience of policy makers, industry participants and investors, sustainability analysts, advocates and journalists tracking the development of low-carbon hydrogen projects and encourage dialogue between those parties to further accelerate adoption of this transformational technology."

"With governments and enterprises worldwide increasingly prioritising decarbonisation goals, we are laser-focused on helping clients capitalise on the enormous opportunities that the ongoing energy transition presents,” said partner Sheila Harvey, who serves as firm-wide Energy Industry Group leader at Pillsbury and co-leads the firm’s Hydrogen practice. 

Hydrogen practice group co-leader Mona Dajani, who heads Energy & Infrastructure Projects and Renewable Energy teams, said energy demand is driving significant innovation in the hydrogen space.

"Green hydrogen projects, which combine renewable power sources with hydrogen production, are unlocking new possibilities for regions previously constrained by weak grid connections and transmission bottlenecks and marking a crucial step in the development of the green hydrogen business case," she said. 

New Australian clean energy storage startup Endua aims to build hydrogen-powered energy storage and deliver sustainable, reliable and affordable power.

Endua is backed by $5 million in funding, technology and industry expertise from CSIRO, Australia’s national science agency; Main Sequence, the deep tech investment fund founded by CSIRO; and Ampol, the country’s largest fuel network.

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