Construction of the fourth Borouge plant within the polyolefin manufacturing complex in Ruwais is on track, with the $6.2 billion Borouge 4 project expected to enter the next phase of its development soon.
The project, being developed by Adnoc and Austrian chemicals producer Borealis, has reached a new milestone, with the early works phase already under way, Borouge said in a statement to the state news agency Wam on Monday.
“Borouge 4 is on track and will enter its next phase of development with the construction of the infrastructure, which includes establishing the utility system, roadwork and associated civil works of the complex,” said Sultan Al Shehhi, the Borouge 4 project director.
As one of the key pillars of Adnoc’s growth strategy, Borouge 4 will contribute to the continued development of the UAE's downstream and industry sector.
The plant will help to boost the local supply chain and meet the projected growth in demand for polyolefins in the Middle East, Africa and Asia, while providing critical feedstock to the Taz’iz Industrial Chemicals Zone in Ruwais.
The construction of the factory began in February. It will use Borealis' proprietary Borstar technology to produce polyolefin solutions across the industrial sectors.
The new Borouge 4 plant covers an area the same size as about 500 football pitches, the company said.
It will also create opportunities for UAE-based manufacturers to the benefit from the government's “Make it in the Emirates” initiative, with more than 25 per cent of the total materials and equipment already being made in the country, Mr Al Shehhi said.
“Borouge 4 is an enabler of Adnoc’s growth strategy, and the UAE and Abu Dhabi's industrial growth and diversification plans,” he said.
Abu Dhabi plans to triple its petrochemical production capacity from 4.5 million tonnes — currently produced entirely by Borouge in Ruwais — by 2025.
Borouge’s first polythene unit was commissioned in 2001 and its capacity is 450,000 tonnes a year.
Borouge 2 and 3, commissioned in 2010 and 2014, raised the capacity to 2 million tonnes and 4.5 million tonnes of polythene and polypropylene, respectively, per annum.
Borouge 4 will increase the company’s overall polyolefin production to 6.4 million tonnes, making it the world’s largest single-site polyolefin complex.