PROJECTS: ADNOC and Borealis sign $6.2bln agreement to expand Borouge facility in Ruwais

The 1.4 million tonnes per annum expansion will make Borouge the world's largest single-site polyolefin facility

  
Image used for illustrative purpose. General view of the Borouge petrochemical facility at ADNOC's Ruwais Industrial Complex in Ruwais, United Arab Emirates May 14, 2018.

Image used for illustrative purpose. General view of the Borouge petrochemical facility at ADNOC's Ruwais Industrial Complex in Ruwais, United Arab Emirates May 14, 2018.

REUTERS/Christopher Pike

Abu Dhabi National Oil Company (ADNOC) and Austrian chemical giant Borealis AG have signed a $6.2 billion (22 billion UAE dirhams) strategic partnership agreement to build the fourth Borouge facility - Borouge 4 - at the polyolefin manufacturing complex in Ruwais, the Abu Dhabi media office announced on Monday. 

Borouge 4 will have a production capacity of 1.4 million tonnes of polyethylene per annum, boosting the Abu Dhabi petrochemical giant’s annual polyolefin production to 6.4 million tonnes, and making it the world’s largest single-site polyolefin facility, the media office said in a press statement. 

The statement said ADNOC will supply feedstock to Borouge 4, which is scheduled to start operations by the end of 2025.  

Subject to an in-depth study, a Carbon Capture unit that would reduce CO2 emissions by 80 percent could also be operational in time for Borouge 4’s start-up, the press statement added. 

It said the new facility will cater to the projected growth in customer demand for polyolefins, driven by their use in manufactured products in the Middle East, Africa and Asia. It will also supply feedstock to the TA’ZIZ Industrial Chemicals Zone in Ruwais. 

The first Borouge facility, producing 450,000 tonnes of polyethylene per annum was commissioned in 2001. Borouge 2 and Borouge 3 took capacity to 2 million tonnes and 4.5 million tonnes of polyethylene and polypropylene per annum in 2010 and 2014 respectively. 

(Writing by SA Kader; Editing by Anoop Menon) 

(anoop.menon@refinitiv.com

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