Adnoc, Borealis ink Dh22 billion agreement to expand Borouge facility

Adnoc and Borealis inked $6.2 billion (Dh22 billion) strategic partnership to expand Borouge facility in Ruwais.

The investment agreement is to build the fourth Borouge facility – Borouge 4 – at the polyolefin manufacturing complex, which will produce 1.4 million tonnes of polyethylene per annum.

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.

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. Borouge produces crucial industrial raw materials, which are exported to customers globally and used by local companies, boosting local industrial supply chains and enhancing In-Country value.

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.

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office and Chairman of the Executive Committee of the Board of Directors of the Abu Dhabi National Oil Company (Adnoc), witnessed the signing of the partnership at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec).

The agreement was inked by Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO and Borealis CEO, Thomas Gangl.

Dr Al Jaber, said: “Adnc 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.”

“Today’s announcement underlines the continued attractiveness of Abu Dhabi and the UAE as a world-leading investment and partnership destination and underpins the robust value offering from our downstream, industry and petrochemicals sector to key global industry partners and investors.”

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

Gangl said: “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.”

The new Borouge 4 facility covers an area equivalent to almost 500 football pitches, or over three times the size of Al Maryah Island in Abu Dhabi, will produce enough polyolefins annually to make enough pipes to supply water to 35 million households.

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

— ashwani@khaleejtimes.com