Abu Dhabi-based Borouge said it plans to award the engineering, procurement and construction (EPC) contract for the expansion of the EU2 ethane cracker in Al Ruwais, Abu Dhabi, this year.

“The expansion project for the EU2 ethane cracker continues, with Front-End Engineering Design (FEED) services completed,” the company said in a statement to the Abu Dhabi Securities Exchange on Wednesday.

In April 2024, the company said the expansion would increase total olefin and polyolefin production by 230,000 tonnes.  

Additionally, Borouge has conducted a feasibility study for the expansion of its third ethane cracker (EU3) and is advancing pre-FEED activities.

Commissioning activities for XLPE 2, the first facility within the Borouge 4 mega project, commenced at the end of 2025 and are ready for start-up from the first quarter of 2026. The plant is designed to produce highly specialised wire and cable solutions. 

Commissioning of the additional Borouge 4 plants is expected through 2026, the statement added.

Once fully operational, the project will add 1.4 million tonnes of annual capacity and significantly enhance the company’s earnings power and market reach.

The XLPE 2 facility utilises resin feedstock from the B3 plant in Ruwais to produce high-purity XLPE material, primarily serving the high-value wire and cable market.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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