Borouge Plc has announced a new phase of production capacity expansion, expected to raise its annual output to over 6.6 million tonnes by 2028. The initiatives are projected to add over 200,000 tonnes per annum of capacity and contribute between $165 million and $200 million (AED600 million–730 million) annually in EBITDA.
The company has awarded two key contracts as part of this strategy. Linde Engineering will undertake the Front-End Engineering Design (FEED) to upgrade the second ethane cracker (EU2), adding 230,000 tonnes of nameplate capacity—an increase of 15%. The project is scheduled for completion in the fourth quarter of 2028.
In parallel, Target Engineering Construction Company has secured the EPC contract for the expansion of Borouge’s fourth and fifth polyethylene units (PE4 and PE5). The upgrade will increase each unit’s capacity from 540,000 to 700,000 tonnes per annum, with commissioning expected in the first quarter of 2027. The project will use Borealis’ Borstar® Polyethylene technology.
Hazeem Sultan Al Suwaidi, CEO of Borouge, stated: “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 will enable us to meet market demands and unlock new revenue streams.”
These expansions follow Borouge’s capacity growth trajectory since 2001, when its annual output was 500,000 tonnes. The company’s production now stands at 5 million tonnes. The expansions align with ADNOC’s In-Country Value (ICV) program, supporting local industrial development.
Further, Borouge’s major shareholders, ADNOC and OMV, have proposed a merger of Borouge and Borealis, alongside the acquisition of Nova Chemicals. The resulting entity, Borouge Group International, would become the fourth largest global polyolefins company with a combined capacity of 13.6 million tonnes and operations across 62 facilities.