The Abu Dhabi National Oil Company (ADNOC) has entered into a framework agreement with Borealis to expand their petrochemical operations in the Ruwais region.

For the expansion of petrochemical operations, both the companies will advance two key projects. 

As part of the deal, the partnership will conduct front end engineering and design study to build Borouge 4 complex, which will include mixed feedstock cracker and downstream derivatives units for both polyolefin and non-polyolefin products.

Expected to become operational in 2023, the proposed Borouge 4 complex will be combined with ADNOC's Takreer refinery.

The partnership will also start engineering, procurement & construction (EPC) tendering for an additional polypropylene plant (PP5) based on Borealis Borstar technology.

The facility, which will be integrated with the existing Borouge 3 complex, will use surplus propylene from Takreer's new propane dehydrogenation unit to produce around 0.5 million tonnes of polypropylene per annum.

Founded in 1998, Borouge joint venture’s current production is 4.5 million tonnes per year from three complexes.

ADNOC is planning to expand petrochemical production from 4.5 to 11.4 million tonnes per year by 2025, as part its 2030 strategy.

In addition, the partnership is planning to review the extension of their Borouge JV beyond its first 30-year lifetime.

ADNOC Group CEO Dr Sultan Jaber said: "ADNOC is determined to work with like-minded partners, such as Borealis, as we deliver on our 2030 strategy and unlock and create long-term, sustainable value for the UAE.”

Borealis chief executive Mark Garrett said: “Both ADNOC and Borealis are determined to take advantage of Borealis leading edge Borstar technology, a world-leading product portfolio and a favourable geographic location at the pivot point between East and West, to capitalise on the markets of steepest growth in Asia."