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Key Points

Borouge is scaling up its production capacity significantly with two major expansion projects. The upgrades will boost ethylene and polyethylene output, reinforcing its position among the top polyolefin producers globally. These initiatives align with ADNOC’s In-Country Value program, supporting UAE’s industrial growth. By 2028, Borouge’s total production will exceed 6.6 million tonnes annually.

Key Points: Borouge Expands Production Capacity to 6.6 Million Tonnes by 2028

  • Borouge awards Linde Engineering FEED contract for EU2 cracker expansion
  • PE4 & PE5 units to grow capacity by 160,000 tpa each
  • Projects to drive $165M-$200M annual EBITDA gains
  • Total polyolefin output to hit 6.6M tonnes by 2028
2 min read

Borouge set to boost production capacity to over 6.6 million tonnes

Borouge boosts ethylene and polyethylene output with $165M-$200M annual EBITDA gains, securing UAE’s polyolefin leadership.

"By increasing production at our EU2, PE4 and PE5 units, we are strategically positioned for accelerated growth. – Hazeem Sultan Al Suwaidi, Borouge CEO"

Abu Dhabi, April 28

Borouge Plc today announced a series of strategic asset expansion projects to accelerate its growth, contributing annually between $165 million and $200 million (AED600 million - AED730 million) in 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 strategic project 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, and 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. (ANI/WAM)

- ANI

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Reader Comments

S
Sarah K.
This is fantastic news for the UAE's industrial sector! The production boost will create so many jobs and opportunities. 🇦🇪 Can't wait to see how this impacts our economy in the coming years.
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Ahmed R.
While I appreciate the economic benefits, I hope Borouge is also investing in sustainable practices with this expansion. The article mentions innovation but doesn't detail environmental impact. More transparency would be welcome.
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Mariam S.
Tenfold production increase since 2001? That's insane growth! My cousin works at Borouge and says the work culture there is amazing. No wonder they're expanding so successfully.
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Thomas L.
Interesting to see Linde Engineering getting the FEED contract again. They must be doing something right with the existing EU2 cracker. Smart move to stick with proven partners for such critical expansions.
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Noura A.
The timeline seems ambitious - 2027/2028 completion dates. Hope they can maintain quality while scaling up so quickly. But if anyone can do it, Borouge can!
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Rajiv P.
As someone in the plastics industry, this expansion is game-changing. Borouge's polyolefins are some of the highest quality in the market. More capacity means better availability for manufacturers like us. 👍

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