ADNOC, Borealis AG sign a US $6.2 billion investment to build Borouge 4

ADNOC and Borealis AG signed a US $6.2 billion investment agreement to build Borouge 4 in Ruwais; which will produce 1.4 million tons of polyethylene per year.

The companies said in a statement that the first Borouge facility will produce a 450,000 tons of polyethylene per year. It was commissioned in 2001. Borouge 2 and Borouge 3 took capacity to 2 million tons and 4.5 million tons of polyethylene and polypropylene per year in 2010 and 2014 respectively. "Borouge 4 will boost the company’s annual polyolefin production to 6.4 million tons, making Borouge the world’s largest single-site polyolefin facility," the companies said.

Borouge 4 will be operational by the end of 2025, in which ADNOC will supply Borouge 4 feedstock.

Borouge 4 is expected to capitalis on the projected growth in customer demand for polyolefins, driven by their use in manufactured products in the Middle East, Africa and Asia. 

“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 InCountry Value opportunities," said Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO.

Borouge produces crucial industrial raw materials which are exported to customers worldwide and then will be used by local companies, boosting local industrial supply chains and enhancing InCountry Value. 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, ADNOC said in a statement.

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," said ADNOC in a statement. The facility 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.