Borouge Plc, a leading name in the petrochemicals sector known for delivering innovative polyolefin solutions, has unveiled a series of strategic asset expansion initiatives designed to fuel its growth trajectory. These projects are expected to contribute between $165 million and $200 million (AED 600 million – AED 730 million) annually to the company’s EBITDA.
As part of this growth plan, Borouge has awarded two significant contracts aimed at expanding the capacity of its second ethane cracker (EU2) and its fourth and fifth polyethylene production units (PE4 and PE5).
Linde Engineering has been selected to deliver Front-End Engineering Design (FEED) services for the upgrade of the EU2 cracker. This project will add 230,000 tonnes per annum (tpa) to its current capacity, boosting it by approximately 15%. The expansion is set for completion in the fourth quarter of 2028. Linde’s proven expertise and its role as the original licensor of the EU2 cracker played a crucial role in its selection. ADNOC Gas and ADNOC Refining will continue to provide ethane feedstock, ensuring a stable and integrated supply chain.
In addition, Target Engineering Construction Company has secured an engineering, procurement, and construction (EPC) contract to enhance and refurbish the PE4 and PE5 units. Following a competitive bidding process, the upgrade will raise the nameplate capacity of each unit from 540,000 to 700,000 tpa. These upgrades will leverage Borealis’ advanced Borstar® Polyethylene technology, with the revamped units expected to be operational by the first quarter of 2027.
Commenting on the developments, Hazeem Sultan Al Suwaidi, CEO of Borouge, stated:
“Expanding our EU2, PE4, and PE5 units alongside the Borouge 4 mega project positions us for accelerated growth. Enhancing our ethylene and polyethylene production capacities will allow Borouge to meet rising global demand, tap into new revenue opportunities, and reinforce our competitive advantage. These initiatives reflect our commitment to innovation, operational excellence, and sustainable development.”
Since its inception in 2001, Borouge has expanded its production capacity tenfold, reaching 5 million tpa and solidifying its place among the top five polyolefin producers across the Middle East and Asia Pacific. Once the Borouge 4 mega project and these expansion efforts are fully operational, the company’s total annual polyolefins production capacity is projected to exceed 6.6 million tpa by 2028. These developments are also contributing significant value to the UAE’s economy through ADNOC’s In-Country Value (ICV) program, supporting broader economic and industrial growth initiatives.
Meanwhile, Borouge’s major shareholders, ADNOC and OMV, have proposed a landmark combination of Borouge with Borealis, alongside the acquisition of Nova Chemicals. This move would establish Borouge Group International, positioning it as the world’s fourth-largest polyolefin producer. The combined entity would boast a production capacity of 13.6 million metric tonnes across 62 facilities in North America, Europe, and the Middle East, more than doubling Borouge’s current capacity and creating a $60 billion global leader in polyolefins.