emirates7 - Borouge Plc has announced a series of strategic asset expansion initiatives designed to fast-track its growth, projected to add between $165 million and $200 million (AED600 million - AED730 million) to its annual EBITDA.
As part of these efforts, the company has awarded two major contracts to enhance the nameplate capacity of its second ethane cracker (EU2) and its fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been selected to carry out the Front-End Engineering Design (FEED) work for the expansion of the EU2 facility, aiming to boost its output by an additional 230,000 tonnes per annum (tpa). This upgrade, which will expand the cracker’s capacity by 15%, is expected to yield significant financial returns once completed by the fourth quarter of 2028. Linde Engineering was chosen for this project due to its strong track record and expertise, as well as its previous role as licensor of the existing EU2 cracker. The ethane feedstock for EU2 will continue to be supplied by ADNOC Gas and ADNOC Refining, ensuring a stable and integrated supply chain.
In parallel, Borouge has awarded Target Engineering Construction Company an Engineering, Procurement, and Construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 units, following a competitive tender process. These upgrades will raise the capacity of each unit from 540,000 to 700,000 tpa, utilizing Borealis' advanced Borstar Polyethylene technology. The upgraded units are expected to come online in the first quarter of 2027.
Commenting on these developments, Borouge CEO Hazeem Sultan Al Suwaidi stated, “By expanding production at EU2, PE4, and PE5 alongside the Borouge 4 mega project, we are positioning Borouge for accelerated, sustainable growth. Enhancing our ethylene and polyethylene production capabilities will enable us to meet rising global demand, open new revenue opportunities, and reinforce our market leadership.”
Since its founding in 2001, Borouge has increased its production capacity tenfold, reaching 5 million tpa and securing a spot among the top five polyolefin producers in the Middle East and Asia Pacific. With the full commissioning of the Borouge 4 project and the current expansions, Borouge’s total polyolefins production capacity is set to exceed 6.6 million tpa by 2028. These initiatives are also contributing significantly to the UAE’s economic growth, aligning with ADNOC’s In-Country Value (ICV) programme to support local industrial and economic development.
As part of these efforts, the company has awarded two major contracts to enhance the nameplate capacity of its second ethane cracker (EU2) and its fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been selected to carry out the Front-End Engineering Design (FEED) work for the expansion of the EU2 facility, aiming to boost its output by an additional 230,000 tonnes per annum (tpa). This upgrade, which will expand the cracker’s capacity by 15%, is expected to yield significant financial returns once completed by the fourth quarter of 2028. Linde Engineering was chosen for this project due to its strong track record and expertise, as well as its previous role as licensor of the existing EU2 cracker. The ethane feedstock for EU2 will continue to be supplied by ADNOC Gas and ADNOC Refining, ensuring a stable and integrated supply chain.
In parallel, Borouge has awarded Target Engineering Construction Company an Engineering, Procurement, and Construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 units, following a competitive tender process. These upgrades will raise the capacity of each unit from 540,000 to 700,000 tpa, utilizing Borealis' advanced Borstar Polyethylene technology. The upgraded units are expected to come online in the first quarter of 2027.
Commenting on these developments, Borouge CEO Hazeem Sultan Al Suwaidi stated, “By expanding production at EU2, PE4, and PE5 alongside the Borouge 4 mega project, we are positioning Borouge for accelerated, sustainable growth. Enhancing our ethylene and polyethylene production capabilities will enable us to meet rising global demand, open new revenue opportunities, and reinforce our market leadership.”
Since its founding in 2001, Borouge has increased its production capacity tenfold, reaching 5 million tpa and securing a spot among the top five polyolefin producers in the Middle East and Asia Pacific. With the full commissioning of the Borouge 4 project and the current expansions, Borouge’s total polyolefins production capacity is set to exceed 6.6 million tpa by 2028. These initiatives are also contributing significantly to the UAE’s economic growth, aligning with ADNOC’s In-Country Value (ICV) programme to support local industrial and economic development.