Wedoany.com Report-Apr. 29, Borouge Plc, a leading polyolefin producer, has unveiled strategic expansion projects to enhance its production capacity, projecting an annual EBITDA increase of $165 million to $200 million. These initiatives focus on upgrading key facilities to meet growing market demand and strengthen the company’s global presence.
The company awarded a contract to Linde Engineering, based in Pullach, Germany, for Front-End Engineering Design (FEED) services to expand its second ethane cracker (EU2) by 230,000 metric tons per year, a 15% capacity increase. Set for completion in Q4 2028, this project leverages Linde’s expertise as the licensor of the existing EU2 unit. The ethane feedstock is sourced from ADNOC Gas and ADNOC Refining, ensuring a reliable supply chain.
Additionally, Borouge selected Target Engineering Construction Company for an engineering, procurement, and construction (EPC) contract to upgrade its fourth and fifth polyethylene units (PE4 and PE5). This project will boost each unit’s capacity from 540,000 to 700,000 metric tons per year using Borealis Borstar® Polyethylene technology. The upgraded units are expected to be operational by Q1 2027.
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.”
Since its establishment in 2001, Borouge has grown its annual production capacity tenfold to 5 million tons, ranking among the top five polyolefin producers in the Middle East and Asia Pacific. The current expansions, alongside the Borouge 4 mega project, will elevate the company’s total polyolefin production to over 6.6 million tons per year by 2028. These efforts support the UAE’s economy through ADNOC’s In-Country Value program, fostering industrial and economic development.
Borouge’s major shareholders, ADNOC and OMV, have proposed merging Borouge with Borealis and acquiring Nova Chemicals to form Borouge Group International. This entity will become the world’s fourth-largest polyolefin company, with a $60 billion valuation and a capacity of 13.6 million metric tons across 62 plants in North America, Europe, and the Middle East. The new group plans to distribute an estimated $2.2 billion in dividends annually from 2026 to 2030, equivalent to at least 16.2 fils per share, enhancing shareholder value and driving innovation.
