UAE’s Borouge to expand its production capacity 

• Company unveils expansion plans
• Annual capacity of 6.6m tonnes
• Could contribute up to $200m

UAE petrochemical company Borouge, a specialist in polyethylene and polypropylene, has unveiled expansion plans to increase annual production capacity to more than 6.6 million tonnes by 2028.

The expansion is expected to contribute $165-$200 million in earnings before interest, tax and depreciation, the company said in a statement. 

Borouge, backed by Abu Dhabi National Oil Company (Adnoc) and Austria’s OMV, has awarded two contracts for the expansion.

Adnoc has 54 percent while Borealis, a joint venture between Adnoc and OMV of Austria, has 36 percent, leaving a free float of 10 percent.

One contract has been awarded to UK-based Linde Engineering to boost the capacity of a second ethane cracker – an industrial facility that converts ethane gas into ethylene – by 15 percent.

The second contract has been awarded to Abu Dhabi-based Target Engineering Construction to expand production capacity at two of its polyethylene units, which is scheduled to be completed in the first quarter of 2027. Following the expansion, its capacity will increase from 540,000 to 700,000 tonnes per annum. 

Together with the Borouge 4 mega-project, the new expansion projects are expected to increase the company’s annual total polyolefins production capacity to more than 6.6 million tonnes per annum by 2028, the company said.

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Borouge 4 is one of the largest industrial projects underway in the UAE. The project, once complete, will boost the company’s total production capacity by 1.4 million tonnes.

“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,” Hazeem Sultan Al Suwaidi, CEO of Borouge, said.

Earlier this month, the company announced it would launch a share buyback programme and increase its dividend payout as it pushes ahead with global expansion, despite mounting trade tensions and sluggish demand.