1. High Performance Top Coat
Borcoat HE3450-H
2nd Kuwait Pipe Tech Conference & Exhibition 2011
Kuwait – 5th of October 2011
Khalfan Al Muhairi – Application Marketing Manager, Borouge
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2. Source:BP, IEA 2006, 2008 Gtoe = Gigatons of oil equivalent
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3. Outline
Borouge Overview
Corrosion in Oil&Gas Sector
Overview 3 layers Polyolefin Steel Pipe Coating Systems
High Performance Top Coat Borcoat HE3450-H
Conclusion Remarks
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4. Borouge…. A successful joint venture combining
resources, feedstock and technology leadership
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© 2006 Borouge

5. Strength in Europe &
High growth in the Middle East and Asia
European Customer
Service Centre
Sales and agents –
Middle East/Asia Pacific
Sales - Americas
Innovation Centre
Production
Borealis Head office
Joint venture centre
Our high quality pipe grades supplied to many countries,
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from South Africa to Australia & New Zealand

6. Major expansions to triple capacity
• Borouge 2 expansion increased
Borouge’s capacity to 2 Million
MTA in 2010
New PP capacity will be 800 KTA
PE capacity will double from current
600 KTA to 1.2 Million MTA.
Innovation Center
• Borouge 3 Toward another
success
Borouge Polyolefins production capacity will be 4.5 million tonnes
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per year in total by the end of 2013
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© 2006 Borouge Pte Ltd

7. Continuing to successfully pursue our
‘Value Creation through Innovation’ path
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© 2006 Borouge Pte Ltd

8. Innovative Polyolefin Solutions for
Oil & Gas Industry
Potable Water Gas Pipes Steel Coating Inner Lining Gravity Pipes
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© 2006 Borouge Pte Ltd

9. Co-operation with Borealis
• Borouge and Borealis are driven by
innovation, striving to create value added
solutions for industry
• Joint manufacture and supply of
Borcoat™ PE and PP coating system
globally
• Shared technical co-operations and
Assistance
• Use of Borealis competencies and
laboratory equipments, including pilot-
line
• Global marketing presence
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• Joint participation in Industry events
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10. Corrosion of steel pipelines is a major and
growing problem for the oil and gas industry
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11. Cost of Corrosion
The annual cost of corrosion worldwide in 2010 is estimated at
USD $ 2.2 Trillion (NACE-International, Houston, Texas, USA)
Estimated
Total Cost
of
Corrosion
in GCC
States
US $ 57.96
Billion
Source: CORROSION IN THE GULF COOPERATION COUNCIL
11 (GCC) STATES: STATISTICS AND FIGURES – A. Al Hashem,
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© 2006 Borouge Corrosion UAE 2011

12. Onshore and Offshore
PE and PP External Coatings
3LPE Systems
 Dominating systems for Gas and Oil pipelines
 Onshore O&G - main market, growing in Water transport
 Healthy growth, due to many new Onshore projects
 HDPE 3LPE fulfils vast majority of projects’ technical requirements
3LPP Systems
 Niche market, still project based (10% of 3LPE volumes)
 Offshore - main market, Oil exploration
 High Growth is in specific regions / projects
 Opportunity of developing Multi-Layers PP system for elevated
Temperature and specific requirements
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13. Design Criteria for three layer PO Systems
Minimize risk of outer layer damage through :
Mechanical impact strength
Indentation Resistance
Resistance against UV degradation
Resistance against Thermal degradation
Resistance against Chemical attack
Low built in “extrusion stresses”
Avoid delamination between outer layer & epoxy
Maximize coating production speed
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14. BorcoatTM Coating systems for Steel Pipes
Global presence for over 30
years.
Documented track record
of over 55,000 kms of
pipeline.
Almost Approved by all
international and major
country standards
Continuous innovation and
launching of higher
performing products.
Sharing of knowledge and
experience across value
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chain.
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15. Advanced 3LPE System
MDPE 3 Layers System:
Bimodal
Grafted
HDPE adhesive 1. Fusion Bonded
Epoxy (FBE)
Epoxy 2. Grafted Polymer
Adhesive
3. Top coat
Borcoat HE3450
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16. 3LPP System – Technical overview
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17. Dolphin Gas Project
 Investment of USD 3.5 Billion including the
development cost of Gas reserves in Qatar
 Transporting 3.2 Billion cubic feet per day of
Natural Gas from Qatar to UAE
 Total length of offshore coated pipeline was
340 km
 36” and 48” pipes had been used for offshore
part.
 20 km of offshore pipeline had been coated
with PP system including a layer of PU and
HDPE jacketing on the top
 320 km of offshore pipeline had been coated
with 3LPE
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© 2009 Borouge Pte Ltd

18. Global split in demand for 3LPE coating properties
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Demands met by
existing Borcoat
PE products:
- 50°C to +85°C
Demand for new
Borcoat PE
products
18 - 30°C to +90°C
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19. Innovations in 3LPE coating systems
Operating Temp Higher temperature Borcoat HE3450-H
90
Borcoat
HE3450
HD - System
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MD - System
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LD - System
Mechanical
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Requirements
Average High Very high for PE Topcoat
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20. Unmet needs in Pipe coating
 Pipelines installed, stored and stacked in
hot climates. Surface temperature may
reach 85-90 deg during the day.
 More construction activities in remote and
difficult terrain. More damage possibility to
coating due to rock impingement.
 More onshore projects with higher
operating temperatures.
 Sieving of soil achieves only coarse backfill
 Limited access to open trench from one
side means pulling the pipe via rollers into
final position
 HDD with unpredictable conditions
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21. Needs translated to material properties
Higher storage and operating High Vicat and melting
temperature temperature of PE and higher
stabilization
Intensive sunlight radiation Pre compounded Top coat
with good CB dispersion
Higher risk for damages Higher density of PE = higher
High Water Table indentation hardness, Higher
moisture barrier
Scratches and pulling of pipe on higher scratch resistance=
rollers higher notch resistance and
resistance to crack growth
Chemicals in the ground and Good ESCR (environmental
water, Aggressive Soil
stress crack resistance)
Our innovation was aimed at increasing mechanical
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strength while not losing other properties
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22. The Borstar® bimodal process can tailor
properties for the application
Benefits
Higher mechanical
Performance,
improved processing
whilst maintaining
ESCR and
toughness.
© 2008 Borealis AG
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02 October 2011
Presentation title
Borstar®

23. New Borcoat steel pipe coating solution
Borcoat HE3450-H top coat compatible with grafted adhesive
Borcoat ME0420 or ME0433 for best in class performance.
Higher mechanical & Thermal properties combined with
higher output
HE3450-H
ME0420/ME0433
Epoxy
Steel
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24. Borcoat HE3450-H resists Slow Crack Growth by
reinforcing the amorphous regions in polymer matrix
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25. Borcoat Density
0.962
HE3450-H 0.930
123.5˚C
Vicat
110˚C
Borcoat HE3450-H
>5000 h
ESCR
>1000 h
Draft ISO 21809-3
(class B) 60
Shore D
55
1050MPa
*Tensile
modulus 770MPa
*not part of ISO 21809-3 requirements
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26. Pilot Line Trials with HE3450-H
Krauss-Maffei 45/30D; screen pack 40/60/40
Screw speed 25, 50, 100, 150 rpm
Monitoring processing:
Output
Pressure at screw end, pressure in the die
Melt temperature in the extruder end outside the die
Torque
Monitoring coating:
Neck-in winding: variation and pulsation
Melt strength: max winding
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Peel strength testing
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27. Benchmarking of HE3450-H with HE3450
Moderate screw speed
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28. Benchmarking of HE3450-H with HE3450
Higher screw speed
Screw speed 100 rpm
Screw speed 150 rpm
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29. Externally verified properties
Tests acc to ISO21809-1, DIN
30670,S, NFA 49-710
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30. Commercial Project with
Borcoat HE3450-H
First trial of Borcoat HE3450-H at Jindal Saw Ltd, India.
3LPE coating was carried out on
6 inchX 6.4 mm ERW steel pipes
for Indraprastha Gas Ltd,
Citygas distribution Project in Delhi.
Combination used : Top coat - HE3450-H
Adhesive - ME0420 (220 mic)
Epoxy - 226N-11G (150 mic).
Overall thickness 2.7 mm.
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Phosphoric acid wash and Chromating was done.
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31. Commercial Project with
Borcoat HE3450-H – Jindal Saw
Darod – Jafrabad pipeline project of GSPC
Extruder – Cincinnati
120 mm screw dia,
1800 kgs/hr max Output
Line speed - 5 meters / minute.
Top coat extruder speed = 42 rpm.
Melt pressure with HE3450 = 98 bar.
Melt pressure with HE3450-H = 82 bars (reduction by 16%)
Melt temperature reduced from 217 to 213 deg C
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32. Commercial Project with
Borcoat HE3450-H – Jindal Saw, India
Test results on Coating
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33. Benefits for Oil & Gas Pipeline Owners
 Higher indentation hardness of the material
will greatly reduce the damage to the coating
during handling, transportation and installation,
which will extend the protection lifetime of the
system.
 Higher Softening temperature of new material
enables the coating to handle higher surface
temperatures of up to 90OC without softening.
This property is particularly important for
pipelines operating in the higher ambient
temperatures in the in the Middle East and Asia.
 Higher moisture barrier/ Chemical Resistance
– Test results show that water vapor permeability
for new grade is 50% less over current grades.
Hence it is more suitable for high water table
areas in GCC.
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34. Some experience figures for pipe damages
Up to 4% of pipes damaged
1-2% of pipes damaged
between coating yard
at coating yard
and harbour or destination
(120 out of 3000 pipes)
3300€ for completely Cost for one
stripped and recoated repair of 10cm² coating
18”pipe “300-500€”
2 persons + material
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35. Thank you for your attention
Conclusion Remarks
 Borouge – Value Creation through Innovation
 Cost of Corrosion is increasing – Preventive vs. Corrective Strategy
 All coatings will suffer and fail early if incorrectly applied or poorly specified.
 3LPE coatings are the dominant coating system worldwide and increased
market share in recent years.
 Over 30 years experience has shown the durability and effectiveness of
3LPE Coating System.
 HDPE and particularly Bimodal HDPE offers significant benefits
 Borcoat HE3450-H completes our product mix for hot climates
 Borcoat HE3450-H ensures improved mechanical protection at elevated
temperatures for transport, storage, installation and operation
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© 2009 Borouge Pte Ltd

36. For more information please contact:
Khalfan Al Muhairi
Application Marketing Manager, Pipe BU, Borouge
khalfan.almuhairi@borouge.com
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© 2009 Borouge Pte Ltd