Borouge set to boost production capacity to over 6.6 million tonnes

Borouge Plc, a leading petrochemicals company that provides innovative and differentiated polyolefins solutions, on Monday announced a series of strategic asset expansion projects to accelerate its growth, contributing annually between $165 million and $200 million (Dh600 million-Dh730 million) in earnings before interest, taxes, depreciation and amortisation (Ebitda).
The company has awarded two major contracts aimed at boosting the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade Borouge's second ethane unit (EU2) with an additional capacity of 230,000 tonnes per annum (tpa). This is expected to increase the EU2 cracker's capacity by 15 per cent, delivering significant financial gains upon completion in Q4 2028. Linde Engineering was selected for its expertise in design and execution, as well as its role as the licensor of the existing EU2 cracker. The ethane used as feedstock for the EU2 cracker is supplied by Adnoc Gas and Adnoc Refining, ensuring an integrated and reliable supply chain.
Borouge has also awarded Target Engineering Construction Company an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This enhancement will increase their nameplate capacity from 540,000 to 700,000 tpa each. Leveraging Borealis Borstar® Polyethylene technology, the project is scheduled to be ready for start-up in Q1 2027.
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: '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. These projects demonstrate our commitment to innovation, operational excellence, and sustainable growth.'
Since 2001, Borouge has increased its annual production capacity tenfold, reaching 5 million tpa and positioning itself among the top five polyolefin producers in the Middle East and Asia Pacific. Together with the Borouge 4 mega project, these expansion projects, once fully ramped up, will increase the company's annual total polyolefins production capacity to over 6.6 million tpa by 2028.
These projects are driving significant value to the UAE's economy through Adnoc's In-Country Value (ICV) programme, supporting economic and industrial growth.
The company's major shareholders, Adnoc and OMV have proposed the combination of Borouge and Borealis, along with the acquisition of Nova Chemicals, to create Borouge Group International. These deals will create the world's fourth largest polyolefin company, a $60 billion global polyolefins leader with a substantial capacity of 13.6 million metric tonnes across 62 plants spanning North America, Europe and the Middle East – more than doubling Borouge's current capacity.
The new entity intends to offer an estimated total dividend of $2.2 billion postclosing of the transaction, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Web Release

7 hours ago

• Web Release

University of Birmingham Dubai students win fifth edition of the ADNOC-Bloomberg Trading Challenge

Students from University of Birmingham Dubai have won the 2025 edition of the ADNOC-Bloomberg Trading Challenge, marking the fifth edition of the unique commodities-focused competition designed to help students in the UAE showcase their skills in data analytics and trading. Sittie Rania Guinomla and Malishka Kaur Bhasin from 'Fortune Traders' team were named the winners for their strategy, which which stood out for its disciplined 'hold and watch' investment approach. The winners are eligible for training placements with ADNOC Global Trading. The challenge forms part of the ADNOC-Bloomberg for Education Initiative, a long-term collaboration between ADNOC, the Ministry of Higher Education and Scientific Research, and Bloomberg aimed at supporting the UAE's next generation of graduates. Over the years, it has become a key platform for students from competing universities to gain hands-on experience using Bloomberg Terminals, guided by Bloomberg analysts from various sectors. Throughout the challenge, teams from participating universities simulate analyst workflows and develop commodities trading strategies, which they present as a research report to a jury of financial sector experts. Saif Al Falahi, ADNOC Director of Group Business Support & Special Tasks, said: 'We warmly congratulate the winners of this year's ADNOC-Bloomberg Trading Challenge on their exceptional performance in a competition that we are proud to have championed since its launch. The challenge offers a valuable platform for the next generation of UAE trading professionals to build the skills and hands-on experience needed to lead the fast-evolving world of global energy trading and drive the UAE's continued economic success.' In 2025, more than 450 students from nine universities took part in the challenge. Five teams were shortlisted as finalists, each presenting their approach to trading. David Massias, Head of Market Specialists – Middle East & Africa, Bloomberg LP said: 'What stands out most to me is how collaborative and committed these students are. They come in eager to learn and they leave with a real understanding of how to work with data, how to think critically, and perhaps most importantly, how to make informed decisions. This year's teams were impressive, and it's great to see such consistently strong talent in the UAE, especially at a time when the country is investing so much in innovation and digital skills.' Launched in 2019 following the signing of a Memorandum of Understanding (MoU) between ADNOC, Bloomberg, and the Ministry of Education, the initiative was created to equip future generations of UAE students with the financial skills needed to thrive in today's dynamic and globally connected world. Since then, it has continued to grow in scale and impact, supporting over 9,000 students and installing 100 Bloomberg Terminals across five of the UAE's leading universities: Khalifa University, Abu Dhabi University, UAE University, New York University Abu Dhabi, and the Higher Colleges of Technology.

The National

2 days ago

• The National

AI, investment and energy discussed during UAE meeting at White House with Vice President JD Vance

UAE officials met US Vice President JD Vance at the White House on Friday to discuss AI, recent investment initiatives and increased energy co-operation. Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, along with Yousef Al Otaiba, the UAE's ambassador to the US and Minister of State, took part in the meeting with the US Vice President. The discussions centred on the UAE's commitment to invest $1.4 trillion in the US for artificial intelligence infrastructure, semiconductors, energy and manufacturing. Earlier this week in Washington at the Atlantic Council's Global Energy Forum, Dr Al Jaber reflected on the unique opportunities unfolding for countries around the world – chiefly the burgeoning AI sector. In March, Mr Vance praised the UAE's focus on AI at the American Dynamism Summit. 'One of the things they [UAE] consistently hammer upon … is that if you want to lead in artificial intelligence, you have got to be leading in energy production,' he said. Over the past decade, the UAE − the Arab world's second largest economy − has been working to become an AI frontrunner as it diversifies its economy away from oil. The country's efforts have resulted in the establishment of start-ups as well as partnerships and investments with industry leaders like Microsoft, Nvidia and OpenAI. Through the creation of language models such as Falcon Arabic, the UAE has also sought to ensure aspects of Arabic culture are not left behind in the AI surge, with many large language models based on English-language data. In 2019, the UAE announced the establishment of a university dedicated to AI, Mohamed bin Zayed University of Artificial Intelligence. Several years before, the UAE was among the first in the world to appoint an AI Minister, Omar Al Olama.

Zawya

2 days ago

• Zawya

Asian refiners seek more Mideast oil after spot premiums jump on Israel-Iran conflict

SINGAPORE/NEW DELHI - Asian refiners have requested more term crude oil supplies loading in August and September from producers in the Middle East after spot premiums jumped, six trade sources said on Friday. Spot premiums for Middle East benchmarks rose above $3 a barrel on Thursday, the highest levels in four months, on fears of supply disruption after fighting broke out between Israel and Iran last week. "We are receiving additional interest from our customers in Asia," a source at a Middle East crude supplier said, adding that the requests are for cargoes loading in August and September. A source at an Asian refiner said the official selling prices (OSPs) for Middle East crude are lower than spot levels, making it more economical to seek more term supplies. Two sources at Indian refineries said they will be receiving more July-loading term crude supply from Middle East suppliers as they anticipate lower supplies from Russia. The sources declined to be named as they are not authorised to speak to the media. Producers such as Saudi Aramco, Abu Dhabi National Oil Co (ADNOC) and Iraq's SOMO typically notify term customers on their allotted volumes a month before cargoes are due to load. It is not immediately clear if the producers will supply more oil, three sources said, although one of them pointed to rising output from the bloc. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, are unwinding supply cuts, planning to increase output by 1.37 million barrels per day between April and July.