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UAE oil giant Abu Dhabi National Oil Company (ADNOC) has signed a $6.2 billion (AED 22 billion) strategic partnership investment agreement with Borealis AG to build the fourth Borouge facility - Borouge 4 - at the polyolefin manufacturing complex in Ruwais.
Borouge produces crucial industrial raw materials which are exported to customers globally and used by local companies, boosting local industrial supply chains and enhancing In-Country Value.
The final investment agreement was signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO and Borealis CEO, Thomas Gangl.
Scheduled to be operational by the end of 2025, ADNOC will supply Borouge 4 feedstock.
Borouge 4 will capitalize on the projected growth in customer demand for polyolefins, driven by their use in manufactured products in the Middle East, Africa and Asia. 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.
Dr. Sultan Ahmed Al Jaber, said: “ADNOC and Borealis’ significant investment in the fourth expansion of Borouge ensures the long-term and sustainable supply of core materials to critical sectors vital to both the UAE and global economy."
"This expansion will see Borouge become the world’s largest single-site polyolefin complex, as it continues to play an integral role in the development of TA’ZIZ, enhancing local industrial supply chains and boosting In-Country Value opportunities," he added.
The facility will utilize Borealis’ proprietary Borstar technology, to produce a product portfolio focused on durable applications for energy, infrastructure, advanced packaging, and agriculture sectors, according to a statement from ADNOC.
This unique technology, in combination with hexene co-monomer, will enable the production of advanced packaging grades with up to 50 percent recycled polyethylene content, the statement said.
(Writing by Seban Scaria ; editing by Daniel Luiz)
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