Borouge International raises 2030 annual target on rising UAE ethane production

Abu Dhabi chemicals maker Borouge International has boosted its global annual capacity target to 13.8 million tonnes by 2030, as it expands its ethane production capabilities in the UAE.

The global polyolefins company, backed by Adnoc's international investment arm XRG and Austria's OMV, had a previous annual output target of 13.6 million tonnes. The company, formed this year through the combination of Borouge, Borealis and Nova Chemicals, is now raising capacity across its 30 global manufacturing sites.

Borouge International signed an agreement with Germany's Linde Engineering to expand one of its ethane crackers in the UAE, the company said in a statement on Wednesday. The move would add 230,000 tonnes to the company's production per year.

An ethane cracker is a production facility that converts ethane into ethylene, which is a vital material for plastics and other synthetic products.

Borouge International has three ethane crackers, all in Abu Dhabi. Bavaria's Linde, the original licenser of Borouge's second cracker, was also awarded a contract to upgrade the third cracker.

Additionally, Borouge International is moving forward with the expansion of the Borouge 4 project in Ruwais. It will add 1.4 million tonnes of polyethylene capacity once fully operational, making Ruwais the world’s largest single-site polyolefin complex.

The company is also accelerating its projects in Europe. In Belgium, Borouge International’s second propane dehydrogenation plant, which has an annual production capacity of 750,000 tonnes, has reached mechanical completion, with operations expected to start in the first half of 2027.

In Germany, Borouge International is expanding its Borstar Nextension polypropylene project, while in Austria it recently opened its Schwechat speciality polypropylene compounding plant following a €100 million ($112.6 million) expansion.

Polyolefins, including polyethylene and polypropylene, are versatile, making them among the most commonly used kinds of plastics globally. They represent nearly 50 per cent of plastics consumption in Europe, according to the Plastics Europe trade association.

“We are unlocking new capacity through our strategic growth and expansion projects, strengthening our global polyolefins platform and generating long-term value for our shareholders,” said Hasan Karam, chief operating officer of Borouge International.

In May, Borouge and AD Ports Group signed an agreement to study the concept of an alternative export hub at Fujairah on the country’s east coast.

The move is aimed at boosting the export resilience of Borouge, allowing the company to bypass the Strait of Hormuz, where shipping activity has been severe disrupted amid the US-Iran war.