Khaled bin Mohamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council has witnessed the signing of a strategic partnership that confirms US$6.2bn investment agreement between ADNOC and Borealis AG 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 globallyand used by local companies, boosting local industrial supply chains and enhancing incountry 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.
Dr Sultan Ahmed Al Jaber, UAE minister of industry and advanced technology, 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 InCountry Value opportunities.
Thomas Gangl, CEO and managing director of ADNOC, Borealis CEO, 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% could also be operational in time for Borouge 4’s start-up. The facility is also designed to capitalise on ADNOC’s recent 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.