Abu Dhabi National Oil Company (Adnoc) has signed a AED22-billion ($6.2 billion) strategic partnership with Austrian chemical giant Borealis to build the fourth Borouge facility – Borouge 4 – at the polyolefin manufacturing complex in Ruwais, UAE.

The world-scale expansion confirms both partners’ commitment to the growth of Borouge and to support chemical production and advanced manufacturing and industry in Ruwais, a key pillar of Abu Dhabi and the UAE’s technology, innovation and industrial development strategy. Borouge produces crucial industrial raw materials which are exported to customers globally and used by local companies, boosting local industrial supply chains and enhancing In-Country Value.

Borouge 4 will capitalise on the projected growth in customer demand for polyolefins, driven by their use in manufactured products in the Middle East, Africa and Asia. The facility will also enable the next phase of growth at the Ruwais Industrial Complex by supplying feedstock to the Ta’ziz Industrial Chemicals Zone.

The final investment agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) by Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc MDor and Group CEO and Borealis CEO, Thomas Gangl.

Dr Sultan Ahmed Al Jaber said: “Adnoc and Borealis’ significant investment in the fourth expansion of Borouge ensures the long-term and sustainable supply of core materials to critical sectors vital to both the UAE and global economy. This expansion will see Borouge become the world’s largest single-site polyolefin complex, as it continues to play an integral role in the development of Ta’ziz, enhancing local industrial supply chains and boosting In-Country Value opportunities.

“Today’s announcement underlines the continued attractiveness of Abu Dhabi and the UAE as a world-leading investment and partnership destination and underpins the robust value offering from our downstream, industry and petrochemicals sector to key global industry partners and investors.” 

Scheduled to be operational by the end of 2025, Adnoc will supply Borouge 4 feedstock.

Thomas Gangl commented: “We are very proud of Borouge and our long-standing partnership with Adnoc. It is with great pleasure that we continue the expansion of our successful partnership in Borouge. Borouge is the key vehicle that enables us to serve the growing customer needs across the Middle East and Asian markets with future-oriented and differentiated solutions based on Borstar, Borealis’ proprietary state-of-the-art technology.”

Borouge 4 will have an industry-leading focus on sustainability leveraging the capabilities of both shareholders. The facility will utilise Borealis’ proprietary Borstar technology, to produce a product portfolio focused on durable applications for energy, infrastructure, advanced packaging, and agriculture sectors.

Subject to an in-depth study, a Carbon Capture unit that would reduce CO2 emissions by 80 per cent could also be operational in time for Borouge 4’s start-up. The facility is also designed to capitalise on Adnoc’s initiatives on clean energy, decarbonising its power supply through access to Abu Dhabi’s clean power sources. These initiatives are aligned with the UAE Net Zero by 2050 Strategic Initiative.

The new Borouge 4 facility covers an area equivalent to almost 500 football pitches, or over three times the size of Al Maryah Island in Abu Dhabi, will produce enough polyolefins annually to make enough pipes to supply water to 35 million households. Borouge’s value-add materials are used to manufacture a diverse range of products including industrial-grade pipes, cables, films and personal protective equipment.

The first Borouge facility, producing 450,000 tonnes of polyethylene per annum was commissioned in 2001. Borouge 2 and Borouge 3 took capacity to 2 million tonnes and 4.5 million tonnes of polyethylene and polypropylene per annum in 2010 and 2014 respectively.  Borouge 4 will boost the company’s annual polyolefin production to 6.4 million tonnes, making Borouge the world’s largest single-site polyolefin facility.