Adnoc and Borealis begin work on $6.2bn Borouge 4 complex in Ruwais

The plant, scheduled to start running by 2025, will increase the complex’s polyolefin production to 6.4 million tonnes

The new plant is expected to help meet the projected growth in demand for polyolefins in the Middle East, Africa and Asia. Photo: Abu Dhabi Media Office

Abu Dhabi National Oil Company and Austrian chemicals producer Borealis have started construction of the fourth Borouge facility within the polyolefin manufacturing complex in Ruwais.

The plant will help to boost the local supply chain and meet the projected growth in demand for polyolefins in the Middle East, Africa and Asia while providing critical feedstock to the Taz’iz Chemicals Industrial Chemicals Zone in Ruwais, Abu Dhabi Media Office said.

Sheikh Hamdan bin Zayed Al Nahyan, the Ruler’s Representative in Al Dhafra Region witnessed the ground-breaking ceremony of the facility on Thursday with dignitaries from the Abu Dhabi government and officials from Adnoc, Borouge and Borealis.

“We continue to receive strong interest from international and local investors who want to partner with us in growing and developing our downstream and petrochemical business in Ruwais,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc.

“Borouge 4 will strengthen our domestic supply chain, while accelerating in-country value and boosting the UAE’s economic diversification. In terms of sustainability, a study for a carbon capture unit that would reduce carbon dioxide emissions has been initiated as part of the project.”

Abu Dhabi plans to triple its petrochemical production capacity from 4.5 million tonnes – currently produced entirely by Borouge in Ruwais – by 2025.

Borouge’s first polythene unit was commissioned in 2001 and its capacity is 450,000 tonnes per annum.

Borouge 2 and 3, commissioned in 2010 and 2014, raised the capacity to 2 million tonnes and 4.5 million tonnes of polyethylene and polypropylene per annum, respectively. Borouge 4 will increase the company’s overall polyolefin production to 6.4 million tonnes, making it the world’s largest single-site polyolefin complex.

“The new expansion embodies our mutual commitment to continue supporting our customers in the Middle East, Asia and Africa with differentiated polyolefins solutions that cater for their future ambitions in the energy, infrastructure, and advanced packaging industries,” Borealis chief executive Thomas Gangl said.