The contracts were awarded for the expansion of EU2 and polyethylene units to support Borouge’s growth strategy. The PE4 and PE5 production units will add approximately 200,000 tonnes per annum of new capacity. The expansion projects, once completed, will increase the company’s annual total polyolefins production capacity to over 6.6 million tonnes per annum by 2028.
April 28, 2025
Borouge Plc, a leading petrochemicals company that provides innovative and differentiated polyolefins solutions, has announced a series of strategic asset expansion projects to accelerate its growth. The expansion projects, once fully ramped up, will increase the company’s annual total polyolefins production capacity to over 6.6 million tonnes per annum by 2028.
The company has awarded two major contracts aimed at boosting the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade Borouge’s second ethane unit (EU2) with an additional capacity of 230,000 TPA. This strategic project is expected to increase the EU2 cracker’s capacity by 15%.
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Borouge has also awarded Target Engineering Construction Company, an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This enhancement will increase their capacity from 540,000 to 700,000 tonnes per annum each. Leveraging Borealis Borstar® Polyethylene technology, the project is scheduled to be ready for start-up in Q1 2027.
Hazeem Sultan Al Suwaidi, CEO of Borouge, said, “By increasing production at our EU2, PE4 and PE5 units, as well as delivering the Borouge 4 mega project, we are strategically positioned for accelerated growth. The expansions of our ethylene and polyethylene capabilities will enable Borouge to meet growing market demands, unlock new revenue streams, and further strengthen our global market position. These projects demonstrate our commitment to innovation, operational excellence, and sustainable growth.”
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Additionally, the company’s major shareholders, ADNOC and OMV have proposed the combination of Borouge, Borealis, and Nova Chemicals to create Borouge Group International, which will be the world’s fourth largest polyolefin company having a net worth of USD 60 billion, and a substantial capacity of 13.6 million metric tonnes across 62 plants, spanning North America, Europe and the Middle East.
