Borouge awards petchem plant contract amid output boost

The joint venture between Adnoc and Borealis aims to double capacity by 2030

 A Borouge 3 petrochemical plant, at the Ruwais refinery and petrochemical complex, operated by Adnoc in Ruwais. The petrochemical company plans to double output by 2030. Photographer: Christophe ViseShow more

Borouge, the petchem joint venture between Abu Dhabi National Oil Company and Austria's Borealis, has awarded a contract to build a polypropylene plant in Ruwais amid plans to double output by 2030.

The additional plant will be integrated with the existing Borouge 3 complex that will help the firm in achieving its target of almost 5 million tonnes per annum production by 2021, it said in a statement on Tuesday. It didn't disclose the value of the contract.

“Today’s announcement is a significant milestone in the expansion of Borouge’s growth ambition to become the recognised leader in creative plastics solutions,” Ahmed Abdulla, chief executive of Borouge said.

Adnoc, the biggest oil producre in the UAE, plans to invest Dh165 billion in downstream operations in partnership with global players over the next five years as the company looks to build the world’s largest integrated refining and petrochemicals facility, with plans under way to create a manufacturing ecosystem at Ruwais.

The company plans to double its production capacity by 2030, under its Borouge 2030 Growth Strategy, according to the statement.

Borouge has awarded the engineering, procurement and construction contract to Tecnimont, a subsidiary of Italy’s Milan-based Maire Tecnimont.

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Based on Borealis Borstar technology, the new plant, will have a “nameplate capacity” of 480,000 tonnes per annum and is expected to come on stream in the third quarter of 2021. The additional plant will boost the company’s total polypropylene production capacity to 2.24 million tonnes per annum, it said.

Borouge was established 20 years ago and is responsible for nearly all of the chemicals output in Ruwais in Abu Dhabi’s western region. Production has progressively increased as the Borouge 1, 2 and 3, plants have come on stream.

Under ADNOC’s In-Country Value programme, this project will maximise spend on local products, manufacturing, services and infrastructure. The ICV initiative also seeks to catalyse socio-economic development, improve knowledge transfer and create additional employment for UAE nationals.