15-11-2021

ADNOC and Borealis to expand Borouge facility

His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office and Chairman of the Executive Committee of the Board of Directors of the Abu Dhabi National Oil Company (ADNOC), today witnessed the signing of a strategic partnership that confirms an USD 6.2 billion investment agreement between ADNOC and Borealis AG to build the fourth Borouge facility — Borouge 4 — at the polyolefin manufacturing complex in Ruwais, United Arab Emirates (UAE).

The world-scale expansion confirms both partners’ commitment to the growth of Borouge and to support chemical production, and advanced manufacturing and industry in Ruwais, a key pillar of Abu Dhabi and the UAE’s technology, innovation and industrial development strategy. Borouge produces crucial industrial raw materials, which are exported to customers globally and used by local companies, boosting local industrial supply chains and enhancing In-Country Value.

Borouge 4 will capitalize on the projected 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 at the Ruwais Industrial Complex by supplying feedstock 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 Technology and ADNOC Managing Director and Group CEO and Thomas Gangl, Borealis CEO.

HE Dr. Sultan Ahmed Al Jaber, said: “ADNOC and Borealis’ significant investment in the fourth expansion of Borouge ensures the long-term and sustainable supply of core materials to critical sectors vital to both the UAE and global economy. This expansion will see Borouge become the world’s largest single-site polyolefin complex, as it continues to play an integral role in the development of TA’ZIZ, enhancing local industrial supply chains and boosting In-Country Value opportunities.

Today’s announcement underlines the continued attractiveness of Abu Dhabi and the UAE as a world-leading investment and partnership destination and underpins the robust value offering from our downstream, industry and petrochemicals sector to key global industry partners and investors.”
Scheduled to be operational by the end of 2025, ADNOC will supply Borouge 4 feedstock.

Thomas Gangl commented: “We are very proud of Borouge and our long-standing partnership with ADNOC. It is with great pleasure that we continue the expansion of our successful partnership in Borouge. Borouge is the key vehicle that enables us to serve the growing customer needs across the Middle East and Asian markets with future-oriented and differentiated solutions based on Borstar, Borealis’ proprietary state-of-the-art technology.”

Borouge 4 will have an industry-leading focus on sustainability leveraging the capabilities of both shareholders. The facility will utilize

, to produce a product portfolio focused on durable applications for energy, infrastructure, advanced packaging, and agriculture sectors. This unique technology, in combination with hexene co-monomer, will enable the production of advanced packaging grades with up to 50% recycled polyethylene content.

Subject to an in-depth study, a Carbon Capture unit that would reduce CO2 emissions by 80% could also be operational in time for Borouge 4’s start-up. The facility is also designed to capitalize on ADNOC’s recent initiatives on clean energy, decarbonizing its power supply through access to Abu Dhabi’s clean power sources. These initiatives are aligned with the UAE Net Zero by 2050 Strategic Initiative.

The new Borouge 4 facility will comprise:
* An ethane cracker, with 1.5 million tons ethylene output per annum, which will be the fourth cracker in Borouge’s integrated petrochemical complex in Ruwais
* Two additional Borstar® polyethylene (PE) plants, each with 700 thousand tons per annum capacity, using state-of-the-art Borealis Borstar third generation (3G) technology
* A cross-linked PE (XLPE) plant of 100 thousand tons per annum capacity
* A hexene-1 unit, which will produce co-monomers for certain grades of polyethylene.