Expansions: Borouge to expand olefin/polyolefins capacity in Ruwais; Vioneo awards FEED to Wood for Belgian biopolymer project

Materials firm Borouge Plc has announced a series of asset expansion projects at its plant in Ruwais, Abu Dhabi, to accelerate its growth, contributing annually between US$165 million and US$200 million in EBITDA.

The company has awarded two major contracts aimed at boosting the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade Borouge’s second ethane unit (EU2) with an additional capacity of 230,000 tonnes/YEAR.

This project is expected to increase the EU2 cracker’s capacity by 15%, delivering significant financial gains upon completion in Q4 2028, Borouge adds. Linde Engineering was selected for its expertise in design and execution, as well as its role as the licensor of the existing EU2 cracker. The ethane used as feedstock for the EU2 cracker is supplied by Adnoc Gas and Adnoc Refining, ensuring an integrated supply chain. 

Borouge has also awarded Target Engineering Construction Company an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This enhancement will increase their nameplate capacity from 540,000 to 700,000 tonnes/year each. Leveraging Borealis Borstar PE technology, the project is scheduled to be ready for start-up in Q1 2027. 

Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “By increasing production at our EU2, PE4 and PE5 units, as well as delivering the Borouge 4 mega project, we are strategically positioned for accelerated growth. The expansions of our ethylene and polyethylene capabilities will enable Borouge to meet growing market demands, unlock new revenue streams, and further strengthen our global market position.” 

Since 2001, Borouge has increased its annual production capacity tenfold, reaching 5 million tonnes/year and positioning itself among the top five polyolefin producers in the Middle East and Asia Pacific. Together with the Borouge 4 mega project, these expansion projects, once fully ramped up, will increase the company’s annual total polyolefins production capacity to over 6.6 million tonnes/year by 2028. These projects are driving significant value to the UAE’s economy through Adnoc’s In-Country Value (ICV) program, supporting economic and industrial growth. 

The company’s major shareholders, Adnoc and Austria’s OMV have proposed the combination of Borouge and Austrian polyolefins maker Borealis, along with the acquisition of Canadian chemical firm Nova Chemicals, to create Borouge Group International. These transformational deals will create the world’s fourth largest polyolefin company, a US$60 billion global polyolefins leader with a substantial capacity of 13.6 million tonnes across 62 plants spanning North America, Europe and the Middle East – more than doubling Borouge’s current capacity. 

In other news, Vioneo, which is owned by AP Moller Holding, the investment arm of AP Moller Group,has awarded engineering firm Wood a multi-million dollar FEED contract to deliver the front-end engineering design for its plant which will produce fossil-free plastics using green methanol. Based in Antwerp, Belgium, the renewably powered and energy efficient plant is said to be the first facility in the world capable of achieving this at industrial scale.

The plant will have the capacity to produce 300 kilotonnes/year of PE/PP plastics made from green methanol and free of fossil feedstock and is scheduled to start commercial operations in late 2028 or early 2029. FID is expected to be taken by the end of 2025.

These plastics will be fully traceable, segregated and carbon negative, enabling customers to reduce Scope 3 emissions. In addition, the production of these plastics does not affect the feedstock supply for food production, ensuring the project is sustainable.

"Vioneo is driving the transition of the plastics industry by demonstrating the economic viability of large-scale, cleaner production using green methanol instead of fossil fuels. This initiative offers Europe the opportunity to lead the EUR5 trillion chemicals and materials sector's defossilisation. Our collaboration with Wood is a crucial step in realising this vision,” said Alex Hogan, CEO, Vioneo.

Vioneo was launched as part of its commitment to advancing green methanol production and promoting sustainable practices in the plastics industry.

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