Borouge International lines up EPC deals for EU2 expansion

Early engineering is under way with Linde Engineering on a larger EU2 ethane cracker in the UAE, while the Kallo PDH2 plant in Belgium has finished mechanical works.

Abu Dhabi, UAE - Borouge International is moving towards the engineering, procurement and construction (EPC) contracts for a 230,000-tonne-per-year capacity increase at Ethane Cracker 2 (EU2), one of several plant projects it has advanced in the UAE and Europe.

Ahead of those EPC awards, the polyolefins producer began early engineering services in 2026 with Linde Engineering. Linde licensed the original EU2 plant and is also the front-end engineering and design (FEED) contractor on the expansion.

Linde has separately received a letter of award for pre-FEED work on the upgrade of EU3, Borouge International’s third ethane cracker. Ethylene from the extra EU3 capacity will be sold as base chemicals, which the company said supports its long-term strategic objectives.

Work also continues at Ruwais on the Borouge 4 expansion, which Borouge Plc runs on behalf of its owners, ADNOC and OMV. When it is fully ramped up, the project is expected to add 1.4 million tonnes of polyethylene capacity, and the company said it will make Ruwais the world’s largest single-site polyolefin complex.

In Belgium, Kallo PDH2, the company’s second propane dehydrogenation plant, has reached mechanical completion. It can produce around 750,000 tonnes per annum, and start-up is expected in H1 2027.

Construction of the Borstar® Nextension polypropylene project at Burghausen, Germany, began in September 2026. Borouge International, which is scaling up the scheme, says the next-generation single-site facility will add significantly to its commercial capacity when finished, to meet rising demand in the market.

In Austria, the company recently opened its Schwechat specialty polypropylene compounding plant after a $112.37 million (€100 million) investment to expand and upgrade it. The European projects are building and delivering long-term value for shareholders, according to Borouge International.

Roger Kearns, Chief Executive Officer of Borouge International, said: “Borouge International brings together world-class assets, proprietary technologies and deep market expertise to create a more competitive and resilient global polyolefins leader. As we execute our growth strategy at scale, we continue to focus on innovation to deliver premium, differentiated solutions that support the needs of our customers and create long-term value for shareholders.”

Dr. Hasan Karam, Chief Operating Officer of Borouge International, said: “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. With a resolute focus on operational excellence, we are maximizing the performance of our assets, harnessing advanced technologies, and shaping the future of our industry.”

The company described the progress as significant and said it advances its global expansion and long-term growth ambitions. It added that the projects strengthen its position as the world’s leading pure-play polyolefins producer, citing its international presence, its own technologies and a wide range of differentiated products.

Borouge International, which calls itself a global polyolefins leader, operates 30 manufacturing sites worldwide and is targeting 13.8 million tonnes of annual capacity by 2030.