By Mary Page Bailey |
The Abu Dhabi National Oil Company (ADNOC) and Borealis Group AG (Vienna, Austria) have signed an investment agreement worth $ 6.2 billion to expand their joint venture (JV) in Borouge by building the fourth Borouge plant – Borouge 4 – in the polyolefin manufacturing complex in Ruwais, United Arab Emirates (UAE).
The global expansion confirms the commitment of both partners to Borouge’s growth and to supporting chemical production, as well as advanced manufacturing and industry in Ruwais, a key pillar of Abu Dhabi and the United Arab Emirates technology, innovation and industrial development strategy. Borouge produces crucial industrial raw materials, which are exported to customers around the world and used by local businesses, strengthening local industrial supply chains and improving value in the country.
Borouge 4 will capitalize on the expected 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 of the Ruwais industrial complex by supplying raw materials to the TA’ZIZ industrial chemicals zone.
The final investment agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technologies and Director general of ADNOC and CEO of the group and Thomas Gangl, CEO of Borealis.
HE Dr. Sultan Ahmed Al Jaber, said: “The significant investment of ADNOC and Borealis in Borouge’s fourth expansion ensures the long-term and sustainable supply of basic materials to critical sectors vital for the United Arab Emirates. and the global economy. This expansion will see Borouge become the largest single-site polyolefin complex in the world, as it continues to play a critical role in the development of TA’ZIZ, improving local industrial supply chains and stimulating value opportunities in the country.
Today’s announcement underscores the continued attractiveness of Abu Dhabi and the UAE as a premier investment and partnership destination and underpins the strong value offering of our downstream sector, from industry and petrochemicals to the industry’s major global partners and investors.
Scheduled to be operational by the end of 2025, ADNOC will supply the Borouge 4 raw material.
Thomas Gangl commented: “We are very proud of Borouge and our long-standing partnership with ADNOC. It is with great pleasure that we continue to expand our fruitful partnership in Borouge. Borouge is the key vehicle that allows us to meet the growing needs of customers in the Middle East and Asian markets with future-oriented and differentiated solutions based on Borstar, Borealis’ proprietary cutting edge technology.
Borouge 4 will focus on sustainable development by relying on the capacities of the two shareholders. The facility will use Borealis’ proprietary Borstar technology to produce a product portfolio focused on sustainable applications for the energy, infrastructure, advanced packaging and agriculture sectors. This unique technology, combined with the comonomer of hexene, will enable the production of advanced packaging qualities containing up to 50% recycled polyethylene.
Subject to an in-depth study, a Carbon Capture unit that would reduce CO2 emissions by 80% could also be operational in time for the Borouge 4 start-up. The installation is also designed to capitalize on recent initiatives. ADNOC in terms of clean energy, by decarbonizing its electricity supply through access to Abu Dhabi’s clean energy sources. These initiatives are aligned with the UAE’s Net Zero by 2050 strategic initiative.
The new Borouge 4 installation will include:
- An ethane cracker, producing 1.5 million tonnes of ethylene per year, which will be the fourth cracker of the Borouge integrated petrochemical complex in Ruwais
- Two additional Borstar polyethylene (PE) factories, each with a capacity of 700,000 tonnes per year, using state-of-the-art Borealis Borstar third generation (3G) technology
- A crosslinked PE (XLPE) plant with a capacity of 100,000 tons per year
- A hexene-1 unit, which will produce comonomers for certain grades of polyethylene.
The first Borouge plant, producing 450,000 tonnes of polyethylene per year, was commissioned in 2001. Borouge 2 and Borouge 3 increased their capacity to 2 million tonnes and 4.5 million tonnes of polyethylene and polypropylene by year in 2010 and 2014 respectively. Borouge 4 will increase the company’s annual polyolefin production to 6.4 million tonnes, making Borouge the largest single-site polyolefin plant in the world.