ADNOC inks framework agreement with Borealis to expand joint petrochemical activities

17-Jul-17

Abu Dhabi National Oil Company (Adnoc) announced on Sunday it has signed a framework agreement with Borealis to advance two key projects that will expand their joint petrochemical activities in Ruwais. The agreement was part of the company’s aim to expand petrochemical from the current 4.5 tpa to 11.4 mln tpa by 2025. Value of the deal was not disclosed. Under the deal, Adnoc and Borealis will move to the front-end engineering and design stage for the construction of the Borouge 4 complex, which is expected to come on stream around 2023. The complex encompasses downstream derivatives units for both polyolefin and non-polyolefin products, and will be integrated with Adnoc’s Takreer refinery. The partners also agreed to hire contractors to build an additional polypropylene plant - dubbed PP5 - to integrate with the third expansion phase, which ramped up to full production of about 4.5 million tonnes a year last spring. The Borouge 4 expansion would more than double output at the plant and is part of an overall Abu Dhabi strategy to squeeze more dollars out of each barrel of its huge crude oil natural resource by adding refining capacity, as well as by supporting “conversion industries” that make products out of the petrochemicals raw material.

“The Borouge 4 complex and polypropylene plant will allow us to grow our current petrochemical production to almost 10 mln tpa, enabling us to take advantage of the market opportunities we have identified, particularly in Asia, where the high-grade polymer market is set to double by 2040,” said Sultan Al Jaber, the chief executive of Adnoc.