Borouge Expands Production Capacity To Over 6.6 Million Tonnes By 2028 With Strategic Projects

Borouge Plc has unveiled plans for strategic asset expansions to boost its growth, aiming to contribute between $165 million and $200 million (AED600 million - AED730 million) annually in EBITDA. The company has awarded significant contracts to enhance the capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5).

Linde Engineering has been chosen for Front-End Engineering Design (FEED) services to upgrade Borouge’s EU2 ethane unit, adding 230,000 tonnes per annum (tpa) capacity. This project is set to increase the EU2 cracker’s capacity by 15%, with completion expected in Q4 2028. Linde's selection was based on its design expertise and role as the existing EU2 cracker's licensor.

Target Engineering Construction Company has secured an engineering, procurement, and construction (EPC) contract for expanding and refurbishing Borouge's PE4 and PE5 units. This project will raise their nameplate capacity from 540,000 to 700,000 tpa each. Utilising Borealis Borstar® Polyethylene technology, the expansion is slated for start-up in Q1 2027.

The ethane used as feedstock for the EU2 cracker is supplied by ADNOC Gas and ADNOC Refining, ensuring a seamless supply chain. These expansions are part of Borouge’s strategy to meet rising market demands while unlocking new revenue streams.

Hazeem Sultan Al Suwaidi, CEO of Borouge, stated, "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. These projects demonstrate our commitment to innovation, operational excellence, and sustainable growth."

Since its inception in 2001, Borouge has expanded its annual production capacity tenfold to reach 5 million tpa. It ranks among the top five polyolefin producers in the Middle East and Asia Pacific regions.

Economic Impact on UAE

The ongoing expansion projects are anticipated to elevate Borouge's total polyolefins production capacity beyond 6.6 million tpa by 2028 when combined with the Borouge 4 mega project. These initiatives significantly contribute to the UAE’s economy through ADNOC’s In-Country Value (ICV) programme by supporting economic and industrial development.

With inputs from WAM