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UAE's Borouge 4 Mega Petrochemical Project Surpasses 50% Completion Milestone
UAE's Borouge 4 Mega Petrochemical Project Surpasses 50% Completion Milestone

UAE's Borouge 4 Mega Petrochemical Project Surpasses 50% Completion Milestone

  • 30-Jan-2024 4:25 PM
  • Journalist: Francis Stokes

Borouge, a prominent petrochemical company based in the UAE, made a significant announcement on Monday, revealing that its expansive Borouge 4 project, currently one of the largest industrial initiatives underway in the country, has successfully surpassed the halfway completion mark, standing at over 50 percent progress. This milestone was accompanied by the completion of the installation of the Borealis Borstar gas phase reactors, a remarkable achievement given their status as the world's largest reactors, each weighing more than 500 tonnes. This noteworthy development was shared through an official press statement by the company.

The installation event was attended by Dr. Sultan Al Jaber, who serves as the Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and also holds the position of Chairman of Borouge. Dr. Al Jaber played a pivotal role in witnessing and acknowledging the successful installation of these colossal reactors.

The Borouge 4 project, slated for completion by the end of 2025, is anticipated to be handed over to Borouge from its principal shareholders, ADNOC and Borealis. Currently listed on the Abu Dhabi Securities Exchange (ADX), Borouge is a joint venture primarily owned by ADNOC, holding 54 percent, and Austria-based Borealis, holding 36 percent. The completion of the Borouge 4 project is expected to augment the company's overall production capacity by an impressive 1.4 million tonnes, culminating in a total annual production capacity of 6.4 million tonnes, as outlined in the official statement.

Hazeem Sultan Al Suwaidi, the Chief Executive Officer of Borouge, emphasized that the Borouge 4 project is a transformative initiative set to convert the Al Ruwais Industrial City facility in Al Dhannah into the world's largest single-site polyolefin complex. Al Suwaidi underscored Borouge's commitment to contributing to the 'Make it in the Emirates' initiative, positioning the project as a pivotal catalyst for industrial growth in the UAE. Furthermore, the project aligns with national goals related to decarbonization and energy efficiency.

Borouge 4 is not only making strides in advancing industrial capabilities but is also a significant driver of job creation, currently engaging over 20,000 individuals on-site. The ambitious construction endeavor is anticipated to involve over 100 million manhours to reach completion, with UAE nationals constituting 46 percent of the project's workforce. The project has already begun delivering substantial economic benefits, evident in the allocation of purchase orders exceeding $600 million to local companies. The press statement highlights the project's target of achieving an In-Country Value (ICV) score of 63 percent.

As part of its commitment to sustainability and local resourcing, Borouge 4 has strategically sourced materials within the UAE. For instance, the electrical cables powering the facility and the high-density polyethylene (HDPE) piping are directly acquired and manufactured from Borouge's polyethylene material, entirely produced within the UAE.

Borouge 4, which commenced construction activities in 2022, is anticipated to encompass an extensive infrastructure, including over 7,500 kilometers of cables, 340,000 cubic meters of concrete, and 77,500 tonnes of structural steel. Noteworthy is the incorporation of an ethane cracker (EU4) designed with tie-ins to a future carbon capture unit, ensuring seamless integration if activated. The project's design prioritizes energy efficiency, aiming to position it in the first quartile based on industry benchmarks established by Solomon Associates.

Furthermore, Borouge 4 is poised to play a crucial role in supplying feedstock such as hydrogen, ethylene, and raw C4 to the TA'ZIZ Industrial Chemicals Zone, meeting the growing demand from key markets like China and India. These markets collectively represent approximately 65 percent of global petrochemical consumption and a substantial 80 percent of the projected growth in the industry. The Borouge 4 project is, therefore, not only a milestone for the company but also a strategic move to contribute significantly to the global petrochemical landscape.

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