UAE state-owned oil company, Abu Dhabi National Oil Company (ADNOC) and Austrian chemical giant, Borealis have jointly started construction of the $6.2 billion worth fourth Borouge facility (Borouge 4) at the company’s polyolefin manufacturing complex in Ruwais.
The facility will help to boost the local supply chain and meet the projected growth in demand for polyolefins in the Middle East, Africa and Asia while providing critical feedstock to the TA’ZIZ Industrial Chemicals Zone in Ruwais. The expansion of Borouge 4 follows confirmation of the final investment decision in November 2021.
The plant, scheduled to be operational by the end of 2025, will produce 1.4 million tonnes of polyethylene, boosting the company’s total annual polyolefin production to 6.4 million tonnes, making Borouge the world’s largest single-site polyolefin complex.
The groundbreaking ceremony was attended by Sheikh Hamdan bin Zayed Al Nahyan, the Ruler’s Representative in Al Dhafra Region, along with a high-level delegation of dignitaries and senior officials from the Abu Dhabi Government, Borouge, ADNOC and Borealis.
“We continue to receive strong interest from international and local investors who want to partner with us in growing and developing our downstream and petrochemical business in Ruwais. Borouge 4 will strengthen our domestic supply chain, while accelerating In-Country Value and boosting the UAE’s economic diversification, in line with the Leadership’s wise directives. In terms of sustainability, a study for a Carbon Capture unit that would reduce CO2 emissions has been initiated as part of the project.”
Mr. Thomas Gangl, CEO of Borealis, said, “Borouge 4 is another milestone in the successful business journey and strategic partnership between Borealis and ADNOC. The new expansion embodies our mutual commitment to continue supporting our customers in the Middle East, Asia and Africa with differentiated polyolefins solutions that cater for their future ambitions in the energy, infrastructure, and advanced packaging industries.”
Borouge’s first polythene unit was commissioned in 2001 and its capacity is 450,000 tonnes per annum. Borouge 2 and 3, commissioned in 2010 and 2014, raised the capacity to 2 million tonnes and 4.5 million tonnes of polyethylene and polypropylene per annum, respectively.