The Abu Dhabi National Oil Company (ADNOC) and Borealis have signed an AED22bn ($6.2bn) partnership agreement to construct a fourth facility at the Borouge polyolefin manufacturing complex in Ruwais, UAE.

The partners have confirmed final investment agreement for the facility dubbed Borouge 4, which will annually produce 1.4 million tonnes of polyethylene. Overall, the new facility will increase the capacity of the Borouge complex to 6.4 million tonnes of polyolefin per year.

The facility will comprise an ethane cracker with a capacity of 1.5 million tonnes per year, two polyethylene plants built on the Borstar technology of Borealis, and a cross-linked polyethylene plant.

According to ADNOC, Borouge 4 will address the increased customer demand in the Middle East, Africa, and Asia with differentiated polyolefin solutions in energy, infrastructure, agriculture, and advanced packaging sectors.

Borealis CEO Thomas Gangl said: “Borouge is the key vehicle that enables us to serve the growing customer needs across the Middle East and Asian markets with future-oriented and differentiated solutions based on Borstar, Borealis’ proprietary state-of-the-art technology.”

Post-expansion, Borouge is expected to become the largest single-site polyolefin complex and will provide feedstock to TA’ZIZ Industrial Chemicals Zone.

UAE Minister of Industry and Advanced Technology and ADNOC managing director and group CEO 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.”

ADNOC will supply feedstock for the Borouge 4 facility, which is targeted to begin operations by the end of 2025.

The firm said that depending on an in-depth study, a carbon capture unit that could bring down CO2 emissions by 80% is likely to be operational in time for the start-up of Borouge 4.

Its partner Borealis is a joint venture between Austria-based OMV (75%) and Abu-Dhabi based Mubadala (25%).