ADNOC and Borealis confirm final investment agreement to build Borouge 4 in Al Ruways, UAE, which will produce 1.4 million tons of polyethylene per annum.
Expansion project includes construction of a 1.5 million tonnes ethane cracker, two state-of-the-art Borstar® polyethylene plants and a cross-linked polyethylene plant
Borouge 4 will meet growing customer demand across the Middle East, Africa and Asia with differentiated polyolefin solutions in energy, infrastructure, and advanced packaging
New facility will benefit from industry-leading technologies to significantly improve energy efficiency and lower emissions, with carbon capture study underway
Upon expansion, Borouge will be the world's largest single-site polyolefin complex and will supply feedstock to TA'ZIZ Industrial Chemicals Zone
Abu Dhabi, UAE, November 15, 2021: 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 a $6.2 billion (AED22 billion) investment agreement between ADNOC and Borealis AG to build the fourth Borouge facility - Borouge 4 - at the polyolefin manufacturing complex in Al Ruways, 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 Al Ruways, 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 Al Ruways 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 Excellence His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO and Borealis CEO, Thomas Gangl.
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 Borealis’ proprietary Borstar technology, 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 covers an area equivalent to almost 500 football pitches, or over three times the size of Al Maryah Island in Abu Dhabi, will produce enough polyolefins annually to make enough pipes to supply water to 35 million households. Borouge’s value-add materials are used to manufacture a diverse range of products including industrial-grade pipes, cables, films and personal protective equipment.
The first Borouge facility, producing 450,000 tons of polyethylene per annum was commissioned in 2001. Borouge 2 and Borouge 3 took capacity to 2 million tons and 4.5 million tons of polyethylene and polypropylene per annum in 2010 and 2014 respectively. Borouge 4 will boost the company’s annual polyolefin production to 6.4 million tons, making Borouge the world’s largest single-site polyolefin facility.
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification. To find out more, visit: www.adnoc.ae
Borealis is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics. We leverage our polymers expertise and decades of experience to offer value adding, innovative and circular material solutions for key industries. In re-inventing for more sustainable living, we build on our commitment to safety, our people and excellence as we accelerate the transformation to a circular economy and expand our geographical footprint.
With head offices in Vienna, Austria, Borealis employs 6,900 employees and operates in over 120 countries. In 2020, Borealis generated EUR 6.8 billion in sales revenue and a net profit of EUR 589 million. OMV, the Austria-based international oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu-Dhabi based Mubadala. We supply services and products to customers around the globe through Borealis and two important joint ventures: Borouge (with the Abu Dhabi National Oil Company, or ADNOC, based in UAE); and Baystar™ (with Total, based in the US).
www.borealisgroup.com | www.borealiseverminds.com
Borstar is a registered trademark of Borealis AG
A joint venture between ADNOC and Borealis, Borouge is a leading petrochemicals company that provides innovative plastics solutions for the energy, infrastructure, mobility, packaging, healthcare and agriculture industries. Following the fourth world–scale expansion, Borouge will become the world's largest single-site polyolefin complex by 2025, with an overall production capacity of 6.4 million tonnes annually. www.borouge.com
For further information, please contact:
REHAB OMAR ATEEQ, Vice President Global Communications, Borouge
T +971 2 708 0807, Rehab.Ateeq@borouge.com