Khalid bin Mohamed bin Zayed attends the signing ceremony of a strategic partnership between ADNOC and "Borealis" worth 22 billion dirhams

In the presence of His Highness Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Member of the Abu Dhabi Executive Council, Chairman of the Abu Dhabi Executive Office, and Chairman of the Executive Committee of the Board of Directors of the Abu Dhabi National Oil Company (ADNOC), ADNOC and Borealis signed today the final investment agreement for the expansion of the Borouge production complex. Polyolefins in Ruwais through the Borouge 4 plant at a cost of 22 billion dirhams ($6.2 billion).

The global expansion project confirms the two partners’ commitment to Borouge’s growth, supporting the growth of the refining, petrochemical and manufacturing sector in the UAE, and developing an advanced industrial system in Ruwais, in line with the UAE’s strategy to stimulate growth in the manufacturing sector, innovation and advanced technology. Borouge produces a range of raw materials that are vital to many industries, and are exported to customers around the world as well as used by local companies, enhancing local supply chains for manufacturing and ICV.

On this occasion, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, said: “In line with the wise leadership’s directives to achieve the maximum possible value from hydrocarbon resources to support industrial growth and economic diversification in the country, ADNOC and Borealis’ investment in The fourth expansion project of the “Borouge” complex to ensure a sustainable supply of basic and raw materials for vital sectors in the UAE and the world.The expansion project will contribute to strengthening the position of the “Borouge” complex to become the largest polyolefins complex in one location in the world, enabling it to play a key role in stimulating sustainable growth, enhancing the local added value, and building the best and most active economy in the world.”

He added, "The announcement of this investment confirms the strong and attractive opportunities that the refining and petrochemicals sector provides to major global partners and investors, and the attractiveness of the UAE and Abu Dhabi as a stable global destination for investment, partnerships and business."

Borouge 4 will benefit from the expected growth in customer demand for polyolefins for use in the manufacture of key products in markets in the Middle East, Africa and Asia.

In addition, the facility will contribute to enabling the next phase of growth in the Ruwais Industrial Complex by providing raw materials for the Chemical Industries Enhancement Zone.

ADNOC will supply Borouge 4 with the necessary raw materials, and the project is scheduled to be operational by the end of 2025.

Thomas Jungle, CEO of Borealis, said: “We are extremely proud of Borouge and our longstanding partnership with ADNOC. We are pleased to continue to strengthen our successful partnership with Borouge, which is a key factor in enabling us to meet the growing needs of customers. in the Middle East and Asia markets by providing distinguished and advanced solutions that look forward to the future and rely on the latest Borstar technologies from Borealis.”

Borouge 4 plant focuses on enhancing sustainability in operations by utilizing the capabilities of both contributors. The plant will use Borealis' proprietary "Borstar" technology, to produce a range of products focused on durable uses for the energy, infrastructure and advanced packaging sectors. , and agriculture.

This innovative technology will allow the production of product types containing up to 50% of recycled polyolefin.

A study is also being carried out to include a carbon capture unit that will reduce carbon emissions by 80% when the plant is commissioned.

The facility is designed to take advantage of ADNOC's recently announced clean energy initiatives, as it reduced carbon emissions in its operations by obtaining electricity produced from clean energy sources, in line with the strategic initiative to achieve climate neutrality by 2050.

Borouge 4, which covers an area of ​​more than 500 football fields or three times the size of Al Maryah Island, will increase the company's annual production capacity of polyolefins sufficient to produce pipes to supply water to more than 35 homes.

Borouge's value-added materials are used to manufacture a variety of products, including industrial pipes, cables, covers and personal protective equipment.

The first “Borouge” plant with a production capacity of 450 thousand tons per year of polyethylene was commissioned in 2001. “Borouge 2” and “Borouge 3” plants raised the production capacity to 2 million tons and 4.5 million tons per year of polyethylene and polypropylene in two years. 2010 and 2014 respectively.

Borouge 4 will increase the company's annual production of polyolefins to 6.4 million tons, making Borouge the largest polyolefins manufacturer in one location in the world.

Follow our latest local and sports news and the latest political and economic developments via Google news