The Abu Dhabi National Oil Company (ADNOC) has signed a $6.2 billion deal to extend its polyolefin Borouge plant, which will make it the largest site producing this type of plastic in the world.
The agreement, with Austrian chemicals group Borealis, will see the Borouge 4 facility built at the existing plastics complex in Ruwais, United Arab Emirates, boosting production to 6.4 million tons of polyolefin a year, said the Abu Dhabi government media office.
Polyolefin is used to make a range of products such as industrial-grade pipes, cables, films and personal protective equipment.
The Abu Dhabi government said: “Borouge 4 will capitalize on the projected growth in customer demand for polyolefins, driven by their use in manufactured products in the Middle East, Africa and Asia.”
Borouge 4, which will range over a site as big as 500 football pitches, is scheduled for completion by the end of 2025.
ADNOC chief executive and minister of industry, Sultan Ahmed Al Jaber said: “Today’s announcement underlines the continued attractiveness of Abu Dhabi and the UAE as a world-leading investment and partnership destination and underpins the robust value offering from our downstream, industry and petrochemicals sector to key global industry partners and investors.”
He added: “This expansion will see Borouge become the world’s largest single-site polyolefin complex.”
The firm’s add, that subject to an in-depth study, a carbon capture unit that would cut CO2 emissions by 80 percent may also be operational in time for Borouge 4’s start-up.
The first Borouge plant was commissioned in 2001, this was followed by Borouge 2 in 2010 and Borouge 3 in 2014. The complex also produces polypropylene and polyethylene plastics.