Borouge to expand olefin, polyolefin production capacity to over 6.6 million tonnes

Expansion projects set to add over 200,000 tonnes per annum of new capacity and will contribute up to $200 million in annual EBITDA

Borouge, a leading petrochemicals company that provides innovative and differentiated polyolefins solutions, has announced a series of strategic asset expansion projects to accelerate its growth, contributing annually between $165 million and $200 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%, delivering significant financial gains upon completion in Q4 2028. 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.

Borouge Group International represents a new era of scale, growth, innovation and shareholder value. The new entity intends to offer an attractive estimated total dividend of $2.2 billion post-closing of the transaction, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030.