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Adnoc and Borouge explore chemicals complex in China

By Pramod Kumar
Dr. Sultan Ahmed Al Jaber, group CEO of Adnoc and chairman of Borouge (centre) at the signing ceremony in Beijing WAM
Dr. Sultan Ahmed Al Jaber, group CEO of Adnoc and chairman of Borouge (centre) at the signing ceremony in Beijing

The UAE’s oil giant Adnoc and Borouge, one of its Abu Dhabi-listed subsidiaries, is exploring the potential of developing a speciality thermoplastics complex in China.

A consortium, which includes Adnoc, Borouge and Borealis, signed a project collaboration agreement with China’s Wanhua Chemical and Wanrong New Materials (Fujian), a wholly owned subsidiary of Wanhua Chemical.

Borealis itself is 75 percent owned by Austria’s OMV and 25 percent by Adnoc.

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The proposed complex in Fuzhou, Fujian Province, is expected to produce 1.6 million tonnes per annum of speciality polyolefins – plastics mainly obtained from oil and natural gas.

Subject to regulatory approvals, the consortium will establish an equally owned joint venture with Wanrong New Materials (Fujian).

The structure of the project and financial commitments will be finalised following the completion of the feasibility study. The companies will also consider incorporating artificial intelligence solutions to support automated plant operations.

China accounts for 40 percent of the global consumption of polyolefins. Since 2013 Borouge has operated application and compounding centres in Shanghai, with 30 percent of its revenue derived from China.

In July 2023 Adnoc confirmed formal negotiations with OMV on the potential creation of a new combined petrochemicals holding entity through the proposed merger of the two companies’ existing shareholdings in Borouge plc and Borealis AG.

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