LONDON (ICIS)--ADNOC and Borouge aim to expand production of polymers from the current 4.5m tonnes/year to 10m tonnes/year at their UAE’s Abu Dhabi joint venture Borouge by 2023, the country’s energy major and the Austrian polymers and fertilizers producer said on Sunday.
The expansion, to be called Borouge 4, will be integrated with ADNOC’s nearby Takreer refinery, the companies said. Borouge 3, the last phase of expansion at the complex, was completed in 2016.
The two companies also announced they will build a new polypropylene (PP) plant at Borouge with an annual production capacity of 500,000 tonnes. The PP plant will use Borealis’ Borstar proprietary technology and will be integrated with Borouge 3.
The two firms said the expansion of polymers output at the UAE’s petrochemical complex was targeting the Asian market, where demand for high-grade polymers is forecast to double by 2040, according to the two firms.
“We are committed to realising downstream growth and stretching the value from every barrel of oil we produce,” said ADNOC CEO Ahmed Al Jaber.
Started in 1998, the Borouge joint venture has a lifespan of 30 years. The two companies said on Sunday they would review a potential extension.
ADNOC and Borealis also said on Sunday they had commenced engineering, procurement and construction (EPC) tendering for the 500,000 tonnes/year PP plant at Borouge 3.“Global demand for polyolefin products is being driven by the growth in emerging economies,” said Mark Garrett, CEO of Borealis.
“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.”The two partners did not disclose financial details on capital expenditure (capex) for the project.
ADNOC was not available for additional comment at the time of writing, while a spokesperson for Borealis declined to comment further.
Pictured above: Borealis CEO Mark Garrett (left) and his ADNOC counterpart Ahmed Al Jaber signing the expansion agreement
Source: ADNOC, Borealis
(Update, re-leads and adds details throughout)