Borouge Increases Production Capacity to Over 6.6 Million Tonnes per Year

Petrochemicals and polyolefins producer Borouge has announced a series of strategic expansion projects that will increase its capacity by more than 200,000 tonnes per year and generate an Ebitda between 165 and 200 million dollars. The company has awarded two major contracts aimed at boosting the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5).

Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade Borouge’s second ethane unit (EU2) with an additional capacity of 230,000 tonnes per annum. This strategic project is expected to increase the EU2 cracker’s capacity by 15%, delivering significant financial gains upon completion in the fourth quarter of 2028. The ethane used as feedstock for the EU2 cracker is supplied by Adnoc Gas and Adnoc Refining, ensuring an integrated and reliable supply chain.

Target Engineering Construction Company has been awarded an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This enhancement will increase their nameplate capacity from 540,000 to 700,000 tonnes per annum each. Leveraging Borealis Borstar polyethylene technology, the project is scheduled to be ready for start-up in the first quarter of 2027.

“By increasing production at our EU2, PE4 and PE5 units, as well as delivering the Borouge 4 mega project, we are strategically positioned for accelerated growth. The expansions of our ethylene and polyethylene capabilities will enable Borouge to meet growing market demands, unlock new revenue streams, and further strengthen our global market position”, Hazeem Sultan Al Suwaidi, CEO of Borouge, said.

Since 2001, Borouge has increased its annual production capacity tenfold, reaching 5 million tonnes per annum and positioning itself among the top five polyolefin producers in the Middle East and Asia Pacific. Together with the Borouge 4 mega project, these expansion projects, once fully ramped up, will increase the company’s annual total polyolefins production capacity to over 6.6 million tonnes per annum by 2028. These projects are driving significant value to the UAE’s economy through Adnoc’s In-Country Value (ICV) program, supporting economic and industrial growth.

The Company’s major shareholders, Adnoc and OMV have proposed the combination of Borouge and Borealis, along with the acquisition of Nova Chemicals, to create Borouge Group International. These transformational deals will create the world’s fourth largest polyolefin company, a 60 billion dollars global polyolefins leader with a substantial capacity of 13.6 million tonnes across 62 plants spanning North America, Europe and the Middle East – more than doubling Borouge’s current capacity. Borouge Group International represents a new era of scale, growth, innovation and shareholder value. The new entity intends to offer an attractive estimated total dividend of 2.2 billion dollars post-closing of the transaction, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030.