The Abu Dhabi government-owned International Petroleum Investment Company (IPIC) has signed a memorandum of understanding with Austrian subsidiary Borealis to develop a chemicals complex in the United Arab Emirates, UAE state news agency WAM reported on Wednesday. The multibillion dollar project to build a “chemicals industrial city” will be located in the emirate of Abu Dhabi, WAM said. Abu Dhabi is the largest emirate in the UAE and holder of 90 percent of the Gulf Arab state's oil reserves. Abu Dhabi Investment Council has also signed the memorandum, WAM said. The complex will include cracking and reforming units to process petrochemical feedstock naphtha. Upon completion of the first phase of the project in 2013, the complex will be the largest of its kind in the world, WAM said. IPIC owns 65 percent of Borealis, while Austria's OMV owns the remaining 35 percent. Borealis is a joint partner with state-run Abu Dhabi National Oil Company (ADNOC) in UAE based petrochemical producer Borouge. The UAE is the world's fifth-largest oil exporter. IPIC invests in oil and gas-related assets for the government as part of a drive to diversify assets. Upon completion of the first phase in 2013, the project would support Abu Dhabi government's strategy of diversifying its economy. The output from the planned complex would also offer opportunities for development of other industries in the country. “This new development brings together three committed partners to achieve a step change in Abu Dhabi's participation in the chemical industry as a testimony of unprecedented growth for the economies of the Middle East in general and for the economy of the UAE in particular,” said Khadem Al-Qubaisi, managing director of IPIC and vice-chairman of Borealis board. “With this venture, we will become an industry model for chemical integration while helping support the goals of the Abu Dhabi government to diversify its economy,” he said. Borealis chief executive Mark Garrett said the initiative “fits well with our strategy to develop our base chemicals business significantly.” “We are already contributing to the growth of Abu Dhabi and we look forward to participating in this major milestone in the regional and global chemical and petrochemical landscape,” he said. __
