Adnoc/Borealis tie-up in US$6.2 bn investment to expand Borouge jv

The Abu Dhabi National Oil Company (Adnoc) and Borealis Group (Vienna, Austria) have signed an investment agreement valued at US$6.2 billion to expand their Borouge joint venture by building the fourth Borouge facility – Borouge 4 – at the polyolefin manufacturing complex in Ruwais, United Arab Emirates (UAE). The expansion includes construction of a 1.5 million tonnes ethane cracker, two Borstar PE plants (1.4 million tonnes/year) and a cross-linked PE plant.

Scheduled to be operational by the end of 2025, Adnoc will supply Borouge 4 feedstock.

Borouge 4 will capitalise on the projected growth in customer demand for polyolefins, driven by their use in manufactured products in the Middle East, Africa and Asia. The facility will also enable the next phase of growth at the Ruwais Industrial Complex by supplying feedstock to the TA’ZIZ Industrial Chemicals Zone.

The companies add that the world-scale expansion confirms both partners’ commitment to the growth of Borouge and to support chemical production, and advanced manufacturing and industry in Ruwais, a key pillar of Abu Dhabi and the UAE’s technology, innovation and industrial development strategy. Borouge produces industrial raw materials, which are exported to customers globally and used by local companies.

The final investment agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and Adnoc Managing Director/Group CEO and Thomas Gangl, Borealis CEO.

Al Jaber, said: “Adnoc and Borealis’ significant investment in the fourth expansion of Borouge ensures the long-term and sustainable supply of core materials to critical sectors vital to both the UAE and global economy. This expansion will see Borouge become the world’s largest single-site polyolefin complex, as it continues to play an integral role in the development of TA’ZIZ, enhancing local industrial supply chains and boosting In-Country Value opportunities.”

Thomas Gangl commented: “We are very proud of Borouge and our long-standing partnership with Adnoc. It is with great pleasure that we continue the expansion of our successful partnership in Borouge. Borouge is the key vehicle that enables us to serve the growing customer needs across the Middle East and Asian markets with future-oriented and differentiated solutions based on Borstar, Borealis’ proprietary state-of-the-art technology.”

Borouge 4 will utilise Borealis’ proprietary Borstar technology to produce a product portfolio focused on durable applications for energy, infrastructure, advanced packaging, and agriculture sectors. This technology, in combination with hexene co-monomer, will enable the production of advanced packaging grades with up to 50% recycled PE content.

Subject to an in-depth study, a Carbon Capture unit that would reduce CO2 emissions by 80% could also be operational in time for Borouge 4’s start-up. The facility is also designed to capitalise on Adnoc’s recent initiatives on clean energy, decarbonising its power supply through access to Abu Dhabi’s clean power sources. These initiatives are aligned with the UAE Net Zero by 2050 Strategic Initiative.

The new Borouge 4 facility will comprise:

Borouge’s materials are used to manufacture a diverse range of products including industrial-grade pipes, cables, films and personal protective equipment.

The first Borouge facility, producing 450,000 tonnes/year of PE was commissioned in 2001. Borouge 2 and Borouge 3 took capacity to 2 million tonnes/year and 4.5 million tonnes/year of PE and PP in 2010 and 2014 respectively. Borouge 4 will boost the company’s annual polyolefin production to 6.4 million tonnes, making Borouge the world’s largest single-site polyolefin facility.

(PRA)

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