Borouge plans to reach a petrochemical production capacity of 4.5 million tonnes a year by next year as the country’s biggest petrochemical producer undertakes a $4.5 billion expansion despite the oil price rout, a company official said yesterday.
Borouge 3 had an initial start last year, and will ramp up to 4 million tonnes by the end of this year, said Hazem Al Suwaidi, the senior vice president of Borouge in the Middle East & Africa. Current capacity is above 2 million tonnes per year.
“There are phases of expansion and we have started some of the phases already,” said Mr Al Suwaidi.
“We have already supplied some of the new capacity to the market place.”
Brent oil, which has dropped 48 per cent last year, has had an effect on petrochemical prices, he said.
“I see 2015 as a challenging year for all petrochemicals given the fact that oil prices continue to drop,” said Mr Al Suwaidi.
“We have seen a correction in our prices. We serve also in a competitive environment and we are not alone in many of these segments.
“The correction has not been similar to the oil price. I would say it is at least 20 per cent.”
Abu Dhabi-based Borouge is a joint venture between state-run energy firm Abu Dhabi National Oil Company and Austria’s petrochemical company Borealis.
Abu Dhabi-based investment firm IPIC has a 64 per cent stake in Vienna-based Borealis.
dalsaadi@thenational.ae
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