Borouge announces strategic expansion to boost production capacity

Abu Dhabi-based petrochemicals company Borouge Plc has unveiled ambitious expansion plans set to increase its annual production capacity to over 6.6 million tonnes by 2028, the company announced in a press statement. 

The strategic asset expansion projects are expected to contribute between $165 million and $200 million (AED600 million - AED730 million) in annual EBITDA. Two major contracts have been awarded as part of this initiative. 

Linde Engineering has secured a contract for Front-End Engineering Design (FEED) services to upgrade Borouge's second ethane unit, adding 230,000 tonnes per annum of capacity, which is a 15% increase for the EU2 cracker. This project is scheduled for completion in Q4 2028, with ethane feedstock supplied by ADNOC Gas and ADNOC Refining. 

Additionally, Target Engineering Construction Company has been awarded an engineering, procurement and construction contract to expand the company's PE4 and PE5 polyethylene production units. This enhancement will increase their nameplate capacity from 540,000 to 700,000 tonnes per annum each, with completion expected in Q1 2027. 

"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," said Hazeem Sultan Al Suwaidi, CEO of Borouge. 

Since 2001, Borouge has increased its annual production capacity tenfold to 5 million tonnes per annum. These expansion projects coincide with the proposed combination of Borouge and Borealis, along with the acquisition of Nova Chemicals, to create Borouge Group International. It is set to become the world's fourth-largest polyolefin company with a capacity of 13.6 million metric tonnes across 62 plants globally.