Borouge Plc, a top-tier petrochemicals company known for delivering advanced polyolefin solutions, has revealed a series of strategic expansion initiatives aimed at accelerating its growth trajectory. These projects are expected to contribute between $165 million and $200 million (AED 600–730 million) annually to the company’s EBITDA.
As part of the expansion plan, Borouge has awarded two key contracts to enhance its production infrastructure. The first contract, granted to Linde Engineering, involves Front-End Engineering Design (FEED) services to upgrade the company’s second ethane cracker (EU2). This upgrade will increase its capacity by 230,000 tonnes per annum (tpa)—a 15% boost—by the end of 2028. Linde Engineering, which also licensed the original EU2 cracker, was selected for its technical expertise and proven track record. Ethane feedstock for the EU2 unit will continue to be supplied by ADNOC Gas and ADNOC Refining, ensuring a stable, integrated supply chain.
In parallel, Borouge awarded an Engineering, Procurement, and Construction (EPC) contract to Target Engineering Construction Company for enhancing and refurbishing its fourth and fifth polyethylene units (PE4 and PE5). These units will see their capacities rise from 540,000 to 700,000 tpa each, utilizing Borealis’ advanced Borstar® polyethylene technology. The upgrades are slated for completion by Q1 2027.
A Strategic Step Toward Global Leadership
Commenting on the developments, Borouge CEO Hazeem Sultan Al Suwaidi said:
"By expanding the capacities of EU2, PE4, and PE5, along with the delivery of our Borouge 4 mega project, we are reinforcing our position as a key player in the global polyolefins market. These projects will help us meet rising global demand, create new revenue opportunities, and strengthen our competitive edge.”
Since its inception in 2001, Borouge has scaled its production tenfold—from a modest start to an annual output of 5 million tpa—placing it among the top five producers of polyolefins in the Middle East and Asia Pacific regions. With the upcoming expansion projects and the full ramp-up of Borouge 4, the company’s total production capacity is expected to exceed 6.6 million tpa by 2028.
Supporting the UAE’s Economic Vision
These initiatives are also aligned with the UAE’s economic development goals. They contribute significantly to ADNOC’s In-Country Value (ICV) program, driving local industrial growth and creating new opportunities within the domestic supply chain.
In a broader strategic move, Borouge’s major shareholders, ADNOC and OMV, have proposed a game-changing merger involving Borouge, Borealis, and the acquisition of Nova Chemicals. If realized, this merger will establish Borouge Group International—a global polyolefin powerhouse valued at $60 billion. The combined entity will operate 62 plants across North America, Europe, and the Middle East, boasting a production capacity of 13.6 million tonnes, more than twice Borouge’s current capability.
This bold transformation is set to position the Borouge Group among the world’s top four polyolefin producers, accelerating its mission to deliver innovative, high-quality, and sustainable polymer solutions globally.
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