ADNOC and Borealis sign $6.2bn strategic partnership

His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office, and Chairman of the Executive Committee of the Board of Directors of the Abu Dhabi National Oil Company (ADNOC), witnessed the signing of a strategic partnership that confirms a USD 6.2bn investment agreement between ADNOC and Borealis AG to build the fourth Borouge facility – Borouge 4 – at the polyolefin manufacturing complex in Ruwais, United Arab Emirates (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 capitalize 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 new Borouge 4 facility will comprise: An ethane cracker, with 1.5 million tons ethylene output per annum, which will be the fourth cracker in Borouge’s integrated petrochemical complex in Ruwais; Two additional Borstar® polyethylene (PE) plants, each with 700 thousand tons per annum capacity, using state-of-the-art Borealis Borstar third-generation (3G) technology; A cross-linked PE (XLPE) plant of 100 thousand tons per annum capacity; and A hexene-1 unit, which will produce co-monomers for certain grades of polyethylene.