Borouge Plc, a leading petrochemicals company specializing in innovative polyolefin solutions, has announced a series of major asset expansion initiatives aimed at accelerating its growth. These projects are expected to contribute between $165 million and $200 million (AED600 million to AED730 million) in annual EBITDA.

As part of its growth strategy, Borouge has awarded two significant contracts to expand the nameplate capacity of its second ethane cracker (EU2) and its fourth and fifth polyethylene units (PE4 and PE5).

Linde Engineering has been awarded the Front-End Engineering Design (FEED) contract to upgrade the EU2 facility. The project will add 230,000 tonnes per annum (tpa) of capacity, boosting the cracker’s output by 15%. Completion is targeted for the fourth quarter of 2028. Linde was selected for its expertise and role as the licensor of the existing EU2 cracker. Ethane feedstock for the facility will continue to be supplied by ADNOC Gas and ADNOC Refining, ensuring a secure and integrated supply chain.

Borouge has also awarded an engineering, procurement and construction (EPC) contract to Target Engineering Construction Company to expand and refurbish its PE4 and PE5 production lines. The upgrade will increase each unit’s capacity from 540,000 tpa to 700,000 tpa. The project, which uses Borealis Borstar polyethylene technology, is scheduled to begin operations in the first quarter of 2027.

“By increasing production at our EU2, PE4 and PE5 units and progressing the Borouge 4 mega project, we are well positioned for accelerated growth,” said Hazeem Sultan Al Suwaidi, CEO of Borouge. “These expansions enable us to meet rising market demand, open new revenue opportunities and reinforce our global position.”

Since its founding in 2001, Borouge has expanded its annual production capacity tenfold, reaching 5 million tpa. With these latest upgrades and the completion of the Borouge 4 project, the company expects to increase its total polyolefins capacity to more than 6.6 million tpa by 2028.

These initiatives also support the United Arab Emirates’ economic development goals through ADNOC’s In-Country Value program.

In a broader move, major shareholders ADNOC and OMV have proposed combining Borouge and Borealis, along with the acquisition of Nova Chemicals, to establish Borouge Group International. The proposed entity would become the world’s fourth-largest polyolefin producer, with a combined capacity of 13.6 million tpa across 62 sites globally. It is expected to deliver a total dividend of $2.2 billion annually from 2026 to 2030, equivalent to at least 16.2 fils per share.