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ADNOC and Borealis Expanding Middle East Polyolefin Capacity With Borogue 4

Polyethylene capacity in the Middle East is poised to see further growth in the next four years with the expansion of the Borouge 4 facility in the United Arab Emirates. ADNOC and Borealis AG signed a strategic partnership this week, confirming a $6.2 billion investment agreement between the two companies for the project.

Upon expansion, expected to be complete by 2025, the two companies said Borouge will be the world's largest single-site polyolefin complex. Current polyolefin capacity at the Borouge facility is at 4.5 million mt/yr.

ADNOC will supply feedstock to the Borouge 4 facility, which will include:

-A 1.5 million mt/yr ethane cracker, which will be the fourth cracker in Borouge's integrated petrochemical complex in Ruwais

-Two 700,000 mt/yr Borstar PE plants, using Borealis Borstar third generation (3G) technology

-A cross-linked PE (XLPE) plant of 100,000 mt/yr

-A hexene-1 unit, which will produce co-monomers for certain grades of PE

The Borouge 4 project is expected to capitalize on the projected demand growth for polyolefins, which has been driven by its use in manufactured products in the Middle East, Africa and Asia.

The companies added that the facility will also enable the next phase of growth at the Ruwais Industrial Complex by supplying feedstock to the TA'ZIZ Industrial Chemicals Zone.

Subject to an in-depth study, a carbon capture unit that would reduce CO2 emissions by 80% could also be operational in time for Borouge 4's start-up, which is in line with the UAE's initiative to be carbon net zero by 2050.

By Brian Balboa for The Plastics Exchange.

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