Borealis has further entrenched its partnership with ADNOC in the United Arab Emirates, signing an agreement as part of ADNOC’s aim to expand petrochemicals from 4.5 million tonnes per annum to 11.4 million tonnes per year by 2025.
Borealis and ADNOC (The Abu Dhabi National Oil Company) have agreed to work together on two key projects in their downstream petrochemicals business and supporting delivery of ADNOC’s smart growth strategy.
Borealis
Mark Garrett of Borealis with Sultan Jabar of the ADNOC
ADNOC recently expanded its partnership to span its entire value chain – the decision builds on ADNOC’s flexible operating model to help ADNOC unlock significant value across its, drive business and revenue growth, improve technology transfer, and secure greater access for its products in key growth markets.
ADNOC and Borealis now move to the pre-feed (front end engineering) stage for building the Borouge 4 complex, which has a huge mixed feedstock cracker, using existing feedstock available in Abu Dhabi and downstream derivatives units for both polyolefin and non-polyolefin products.
The Group is aiming to bring the Borouge 4 complex on stream in 2023 and it will be integrated with ADNOC’s Takreer refinery.
Sultan Jaber, Group CEO of ADNOC, said: “We are committed to realising downstream growth and stretching the value from every barrel of oil we produce. Today’s agreement with Borealis marks an important milestone in two key projects that support our smart growth and partnership strategy.”
“ADNOC is determined to work with like-minded partners, such as Borealis, as we deliver on our 2030 strategy and unlock and create long-term, sustainable value for the UAE. The Borouge 4 complex and polypropylene plant will allow us to grow our current petrochemical production to almost 10 million tonnes per year, enabling us to take advantage of the market opportunities we have identified, particularly in Asia, where the high-grade polymer market is set to double by 2040.”
The Borouge joint venture was established in 1998 and production has progressively ramped up with the consecutive completions of the Borouge 1, 2 and 3 complexes. Current production capacity is 4.5 million tonnes per year, following the successful start-up of Borouge 3 in 2016.
Mark Garrett, Borealis Chief Executive, said: “ADNOC and Borealis have a long and successful history of working in close partnership at Borouge. Today we recommit our long-term engagement in Borouge and we look forward to embarking on the next stage of our journey with the extension and expansion of the Borouge Joint Venture.”
“Global demand for polyolefin products is being driven by the growth in emerging economies. Both ADNOC and Borealis are determined to take advantage of Borealis leading edge Borstar technology, a world-leading product portfolio and a favourable geographic location at the pivot point between East and West, to capitalise on the markets of steepest growth in Asia.”
