Part of the sprawling Borouge industrial complex in Ruwais. A new production capacity - Borouge 4 - entails a whopping Dh22 billion in new investments. Image Credit: Gulf News Archive

Dubai: ADNOC has signed off a staggering $6.2 billion investment deal with Borealis AG to build a fourth Borouge facility at the the polyolefin manufacturing complex in Ruwais, Abu Dhabi. It is scheduled to be operational by the end of 2025.

The latest project affirms the partners’ support for chemical production and advanced manufacturing and industry in Ruwais and a “key pillar of Abu Dhabi and the UAE’s technology, innovation and industrial development strategy”. Borouge produces industrial raw materials.

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said in a statement: “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."

Massive in all aspects

The new facility will cover an area equivalent to "almost 500 football pitches, or over three times the size of Al Maryah Island in Abu Dhabi". It 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.

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

- Thomas Gangl, Borealis CEO

Need for investment

With Borouge 4, the promoters intend to capitalize on 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 first Borouge facility, producing 450,000 tonnes of polyethylene per annum, was commissioned in 2001. Borouge 2 and Borouge 3 took capacity to 2 million tonnes and 4.5 million tonnes of polyethylene and polypropylene per annum in 2010 and 2014, respectively.

Borouge 4 will boost the company’s annual polyolefin production to 6.4 million tonnes, making Borouge the world’s largest single-site polyolefin facility.