Expansion projects will contribute up to US$ 20mn in annual EBITDA
Borouge has announced a series of strategic asset expansion projects to accelerate its growth, contributing annually between US$ 165mn and US$ 200mn in EBITDA.
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 tonnes per annum (tpa).
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.
Accelerated growth
“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,” commented Hazeem Sultan Al Suwaidi, CEO, Borouge.
Since 2001, Borouge has increased its annual production capacity tenfold, reaching 5mn tpa and positioning itself among the top five polyolefin producers in the Middle East and Asia Pacific.
Together with the Borouge 4 mega project, these expansion projects, once fully ramped up, will increase the company’s annual total polyolefins production capacity to over 6.6mn tpa by 2028. These projects are driving significant value to the UAE’s economy through ADNOC’s In-Country Value (ICV) programme, supporting economic and industrial growth.
