Expansion ventures set to add over 200,000 tonnes per annum of new capacity and will make contributions up to $200 million in annual EBITDA
Borouge, a leading petrochemicals enterprise that provides revolutionary and differentiated polyolefins solutions, has declared a series of strategic asset expansion venture to accelerate its growth, contributing annually among $165 million and $200 million in EBITDA.
The enterprise has provided two big contracts goal toward increasing the nameplate ability of its second ethane cracker (EU2) and the 4th and 5th polyethylene units (PE4 and PE5).
Linde Engineering has been presented a contract for Front-End Engineering Design (FEED) services to upgrade Borouge’s second ethane unit (EU2) with an additional capacity of 230,000 tonnes per annum (tpa). This strategic venture is predicted to boost the EU2 cracker’s capacity by 15%, producing vast financial gains upon completion in Q4 2028. The ethane used as feedstock for the EU2 cracker is delivered through ADNOC Gas and ADNOC Refining, making sure an integrated and reliable supply chain.
Borouge has also provided Target Engineering Construction enterprise an engineering, procurement, and production (EPC) contract for the growth and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This improvement will increase their nameplate capacity from 540,000 to 700,000 tpa every. using Borealis Borstar Polyethylene technology, the venture is expected to be ready up for start-up in Q1 2027.
Hazeem Sultan Al Suwaidi, CEO of Borouge, stated: “By growing manufacturing at our EU2, PE4 and PE5 units, in addition to delivering the Borouge 4 mega venture, we are strategically positioned for accelerated growth.
“The expansions of our ethylene and polyethylene capabilities will permit Borouge to fulfill growing market needs, release new revenue streams, and in addition make stronger our global market position. These ventures exhibit our commitment to innovation, operational excellence, and sustainable growth.”
Since 2001, Borouge has increased its annual manufacturing capability tenfold, accomplishing 5 million tpa and positioning itself among the top five polyolefin producers within the Middle East and Asia Pacific. Together with the Borouge four mega venture, those enlargement venture, as soon as fully ramped up, will increase the enterprise’s annual total polyolefins manufacturing ability to over 6.6 million tpa by 2028.
Borouge Group International represents a brand new technology of scale, growth, innovation and shareholder value. The new entity aims to offer an appealing estimated total dividend of $2.2 billion publish-closing of the transaction, equivalent to at the least of 16.2 fils per share dividend, yearly from 2026 to 2030.
