Borouge Announces Strategic Expansions to Increase Capacity

Borouge announced a series of strategic asset expansion projects to accelerate its growth and generate EBITDA of $165-200 million per year. The company has awarded two major contracts to increase 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 the front-end engineering design (FEED) upgrade services for Borouge's second ethane unit (EU2), which will increase its capacity by 230,000 tonnes per annum. The strategic project is expected to increase the capacity of the EU2 cracker by 15% and deliver significant financial benefits upon completion in the fourth quarter of 2028. The feedstock ethane for the EU2 cracker is supplied by the Abu Dhabi National Oil Company (ADNOC) Gas and Refining Division, ensuring an integrated and reliable supply chain.

Following a competitive bidding process, Borouge has also awarded Target Engineering & Construction the engineering, procurement and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units. The upgrade will increase Target’s nameplate capacity from 540,000 tonnes per annum to 700,000 tonnes per annum. The project, which uses Borealis’ Borstar polyethylene technology, is scheduled to start production in the first quarter of 2027.

“We are strategically positioned to accelerate growth through increased production at our EU2, PE4 and PE5 units, as well as through the implementation of Borouge Megaproject 4,” said Hazeem Sultan Al Suwaidi, Borouge CEO.

The expansion of ethylene and polyethylene capacity will enable Borouge to meet growing market demand, develop new revenue streams and further strengthen its global market position.

Since 2001, Borouge has increased its annual production capacity tenfold to 5 million tonnes per annum, making it one of the top five polyolefins producers in the Middle East and Asia Pacific. Once fully operational, these expansion projects, together with Borouge Megaproject 4, will bring the company’s total polyolefins capacity to more than 6.6 million tonnes per annum by 2028.