meed-logo

line1 line2 line3
SIGN IN / REGISTER

Borouge extends bid deadline for butene-1 expansion

11 July 2025

Abu Dhabi petrochemicals producer Borouge has extended the deadline for contractors to submit bids for a project to increase production of butene-1 from the olefins conversion unit (OCU) at its Borouge 2 plant.

Borouge aims to produce 60,000 tonnes a year (t/y) of butene-1 from the existing fractionator column, while limiting propylene production from the OCU to 500,000 t/y.

The company intends to achieve the target through the addition of co-monomer production technology and selective hydrogenation units, while maintaining the current design operation of 752,000 t/y of propylene and 39,000 t/y of butene-1, along with increasing storage capacity for butene-1 by converting N1 mixed butane spheres to butene-1-specific units.

Borouge has extended the deadline for contractors to submit technical bids for engineering, procurement and construction (EPC) works on the project to 4 August from 11 July, according to sources.

MEED previously reported that Borouge had organised a site visit for bidders for the butene-1 capacity enhancement project on 25 June.

The following contractors, among others, are understood to be bidding for the butene-1 capacity enhancement project:

  • Descon Engineering (Pakistan)
  • Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
  • Target Engineering Construction (UAE)

Borouge issued the main EPC tender for the butene-1 capacity enhancement project on 4 June, and set an initial deadline of 23 June for submission of technical bids.

Borouge issued an advanced request for tender in May.

Borouge previously awarded US-based Lummus Technology a contract to develop the process design package for the new co-monomer production technology unit, as a licensor of OCU.

Lummus, in turn, sub-contracted the extended process design package and basic engineering works on the project to South Korea’s Samsung E&A.

Borouge plans to award the main EPC contract for the butene-1 capacity enhancement project in the first quarter of 2026.

Butene-1 is a colourless gas mainly used in the production of high-quality plastics such as polyethylene and poly(1-butene). Important applications of Butene-1 are in packaging materials such as films, bags and food packaging.

ALSO READ: Borouge awards output capacity expansion contracts

Borouge entered operations in 2001, with a production capacity of 450,000 t/y of polyethylene. The Borouge 2 and Borouge 3 expansion projects took the capacity to 2 million t/y and 4.5 million t/y of polyethylene and polypropylene in 2010 and 2014, respectively. 

When the under-construction Borouge 4 complex enters operations, Borouge’s overall production capacity will increase significantly from 5 million t/y to 6.4 million t/y, making it the world’s largest single-site polyolefins facility.

The upcoming Borouge 4 polyolefins complex will feature two polyethylene plants – each with a capacity of 700,000 t/y – using the third generation of Borealis Borstar technology. An ethane cracker will supply these plants with a capacity of more than 1.5 million t/y of ethylene, as well as associated ethylene derivatives.

Following the signing of a final investment decision agreement worth $6.2bn by Adnoc and Borealis in November 2021, Borouge awarded the main EPC contracts for the Borouge 4 project in December of that year.

The EPC packages, the winning contractors, their estimated contract values and a brief scope of work are as follows:

  • Early works (package one) – Al-Asab General Transport & Contracting (UAE) – site preparation and early civil works
  • Ethane cracker (package two) – Technip Energies (France)/Target Engineering (UAE) – $1.58bn – building an ethane cracker with a manufacturing capacity of 1.5 million t/y of ethylene
  • Polymers production (package three) – Tecnimont (Italy) – $1.35bn – building two new polyethylene manufacturing plants and a unit to produce 1-hexene, a component in the production of high-performance polyethylene
  • Utilities and offsites (package four) – Tecnimont (Italy) – $1.5bn – constructing non-process buildings, roads, infrastructure, internal and external interfaces, tankage systems, flaring systems and utilities, as well as integration of Borouge 4 with the existing facilities
  • Second cross-linkable-polyethylene (XLPE) plant (package five) – Tecnimont (Italy) – $350m – building an XLPE plant with a capacity of 100,000 t/y.

Italian contractor Maire Tecnimont executed the front-end engineering and design works for Borouge 4.

Borouge awarded France-based Axens a contract to provide licensed technologies in January 2020. This covered supplying a methyl tertiary butyl ether unit coupled with a 1-butene production unit and 1-hexene unit for the project.

The new Borouge 4 facility will cover an area equivalent to almost 500 football pitches, or more than three times the size of Al-Maryah Island in Abu Dhabi. It will produce enough polyolefins annually to make pipes to supply water to 35 million households.

Borouge Group International

Borouge is the petrochemicals-producing joint venture of Abu Dhabi National Oil Company (Adnoc) and Austrian energy company Borealis. Adnoc owns the majority 56% stake in Borouge, with Borealis holding a 34% stake. The remaining 10% of shares in Borouge trade on the Abu Dhabi Securities Exchange following an initial public offering in June 2022, from which Adnoc Group earned proceeds of $2bn.

In March, Adnoc and Austrian energy company OMV entered into a binding framework agreement to combine their shareholdings in Borouge and Borealis and take control of a greater share of the global chemicals market.

Adnoc has also entered into a share purchase agreement with Canada-based Nova Chemicals Holdings, an indirectly wholly-owned company of Abu Dhabi’s sovereign wealth institution Mubadala Investment Company, for 100% of Nova Chemicals Corporation (Nova).

Adnoc and OMV have also agreed that upon completion of the planned merger of Borouge and Borealis, the new entity – which will be known as Borouge Group International – will acquire Nova for $13.4bn including debt, further expanding its footprint in North America.

Borouge Group International is intended to be headquartered and domiciled in Austria, with regional headquarters in the UAE. In addition, Borouge Group International will hold corporate hubs in Canada’s Calgary, Pittsburgh in the US and Singapore.

The combination of Borouge and Borealis, and the acquisition of Nova, is expected to be completed in the first quarter of 2026, subject to regulatory approvals and other customary conditions, Adnoc said.

The acquisition, together with the contribution of the upcoming Borouge 4 petrochemicals project in Abu Dhabi, will create a major polyolefins producer valued at over $60bn. It will be the world’s fourth-largest by nameplate production, with a potential of 13.6 million metric t/y across 62 plants globally.

ALSO READ: Borouge awards $531m contract to Adnoc Logistics & Services
https://image.digitalinsightresearch.in/uploads/NewsArticle/14249332/main1841.jpg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Iraq awards Baghdad airport PPP deal

    29 October 2025

    Register for MEED’s 14-day trial access 

    Iraq has awarded a contract to develop Baghdad International airport on a public-private partnership (PPP) basis to a consortium comprising Luxembourg-based Corporacion America Airports (CAAP) and local firm Amwaj International.

    According to local media reports, the estimated $764m contract covers the rehabilitation of airport infrastructure, construction of a new passenger terminal, and operations and maintenance under a 25-year concession.

    In a statement on its website, the Ministry of Transport said the airport’s initial capacity is expected to be around 9 million passengers, gradually increasing to 15 million.

    Iraq’s Ministry of Transport and General Company for Airports & Air Navigation Services received the bids earlier this month, MEED reported.

    The bidding consortium included:

    • Asyad Holding / Top International Engineering Corporation / Lamar Holding / YDA Insaat / Dublin Airport Authority (Saudi Arabia/Saudi Arabia/Saudi Arabia/Turkiye/Ireland) 
    • Corporacion America Airports / Amwaj International (Luxembourg/Iraq)
    • ERG International / Terminal Yapi / ERG Insaat (UK/Turkiye/Turkiye)

    The media report added that the winning consortium offered the government 43.05% of total airport revenues.

    The Asyad-led consortium offered 38.05%.

    The ERG International-led consortium was disqualified from the bidding process.

    The International Finance Corporation (IFC), a member of the World Bank Group, is the project’s lead transaction adviser.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14971278/main.jpg
    Yasir Iqbal
  • Saudi Electricity Company secures $3bn financing deal

    29 October 2025

    Saudi Electricity Company (SEC) has signed a $3bn financing agreement with a consortium of international banks at the Future Investment Initiative Forum (FII9) in Riyadh.

    The financing comes as SEC continues to expand its project portfolio to meet rising electricity demand. In September, SEC outlined plans to invest SR220bn ($58.7bn) in power projects between 2025 and 2030.

    This includes SR135bn ($36bn) and SR85bn ($22.7bn) for transmission and distribution, respectively, and is part of long-term plans to meet growing electricity demand while improving grid efficiency and reliability.

    The financing partners include the UAE's Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank and Emirates NBD.

    Also included are Bank of East Asia (Hong Kong), Bank of China, Barclays (UK), China Construction Bank, HSBC (UK), Industrial and Commercial Bank of China (China), ING (Netherlands) and Mega Bank (Taiwan)

    The state-controlled utility, majority-owned by the Public Investment Fund (PIF), has dominated procurement activity in the power sector in 2025, awarding approximately $6bn-worth of contracts.

    This has been led by two standalone projects in Dawadmi and Riyadh, each with a capacity of 500MW/2,000MWh and an estimated value of about $600m.

    The utility continues to advance other major developments including the PP13 and PP14 combined-cycle gas turbine (CCGT) power plants in Riyadh. In October, it signed $3.4bn in offtake deals for the plants, which have a total capacity of 3,356MW.

    It also recently reached financial close for Saudi Arabia’s Qurayyah CCGT independent power project (IPP) expansion.

    SEC will develop, finance, build, own and operate the 3,010MW plant as part of a consortium with Saudi Arabia's Acwa Power and Hajj Abdullah Alireza & Company (Haaco).

    Alongside its financing agreement, SEC launched a new Supply Chain Financing Programme during FII9 in partnership with local fintech Manafa and US-headquartered SAP Taulia, supported by the Saudi Industrial Development Fund.

    The initiative aims to improve liquidity across the energy supply chain and enable suppliers to access fast financing at more competitive rates.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14971266/main.jpg
    Mark Dowdall
  • Design work completed for $1bn Libyan pipeline

    29 October 2025

     

    Front-end engineering and design (feed) work has been completed for the major oil pipeline that will extend from oil fields in the south of Libya to the oil export terminal of Es Sider, according to industry sources.

    Libya’s Waha Oil Company, a subsidiary of state-owned National Oil Corporation (NOC), is developing the pipeline.

    The 700-kilometre pipeline will have a diameter of 32 inches and the capacity to transport 1 million barrels a day (b/d) of oil.

    One source said: “It is crucial that the existing pipeline is replaced. The existing pipeline is suffering frequent leaks and cannot handle higher pressures.

    “In 1960, when the pipeline was installed, the pipe thickness was 36mm, but it is now so worn out that this has been reduced to around 8mm across much of the pipeline. In some spots, it is even less than 8mm.

    “Production cannot be increased at the oil field due to this ageing facility.”

    Waha is preparing to eventually tender an engineering, procurement and construction (EPC) contract for the project, which is estimated to have a value of between $1bn and $1.25bn.

    Although the pipeline’s actual usage is unlikely to exceed 300,000 b/d for some time after its completion, it is being designed to be ready for a significant increase in oil production from Libya’s southern oil fields.

    It is unclear when Waha plans to issue an invitation to bid for the project’s EPC contract.

    In 2012, Waha announced a project to replace key oil pipelines in Libya, but funding issues delayed the timeline and invitations to bid were never issued.

    In January 2024, MEED reported that Waha was considering plans to boost its production by 1 million b/d.

    At the time, the subsidiary was producing about 300,000 b/d.

    Earlier this month, NOC announced that the country’s crude oil production had reached 1,383,430 barrels a day (b/d).

    The company said that natural gas production was 2,519 million cubic feet a day (cf/d), while condensate production was 49,013 b/d.

    NOC said it aimed to further increase production capacity to approximately 1.6 million cf/d by 2026.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14970171/main.jpg
    Wil Crisp
  • Qatari firm tenders Oman gabbro mining works

    29 October 2025

    Register for MEED’s 14-day trial access 

    Qatar Primary Materials Company (QPMC) has issued a tender for additional works at its gabbro mining development in the Khatmat Milaha area of Oman, close to a border crossing with the UAE.

    The broad scope of work involves the remaining works for two gabbro quarries and the construction of an export jetty at Khatmat Milaha, state-owned QPMC, also known as Al-Awalia, said in the tender notice.

    Firms have until 11 November to submit bids for the tender, QPMC said.

    QPMC owns a 3 million tonne‑a‑year (t/y) gabbro quarry at Khatmat Milaha in Oman, which is understood to have been commissioned in 2020. The quarry has an expandable capacity of 7 million t/y.

    The Omani quarry project had been planned for a number of years. In 2015, QPMC signed an agreement with Belgian firm Rent-A-Port to start work on the Khatmat Milaha quarry project.

    Rent-A-Port was the consultant for QPMC’s gabbro port in Qatar. A joint venture of Denmark’s FLSmidth and Sixco completed the estimated QR1.6bn ($430m) contract to build the aggregate berths in 2017. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14968152/main2817.jpg
    Indrajit Sen
  • Kuwait forms project company for Al-Zour North expansion

    29 October 2025

    Register for MEED’s 14-day trial access 

    Kuwait has formally established a new public shareholding company to manage the next stages of the Al-Zour North independent water and power plant (IWPP).

    The Gulf Alliance for Power & Water Company will be responsible for the construction, implementation, management, operation and maintenance of Al-Zour North IWPP phases two and three.

    The Al-Zour North phases two and three IWPP involves constructing a 2,700MW power plant and a 120-million-imperial-gallon-a-day desalination facility. The project’s total estimated value is approximately $4bn.

    In August, Saudi Arabia’s Acwa Power and Kuwait-based financial institution Gulf Investment Corporation (GIC) signed a contract to develop the project, which will be the country’s largest IWPP.

    The consortium of Acwa Power and GIC will hold 40% of the project company through Al-Zour Kuwaiti Second & Third Holding Company.

    The Public-Private Partnership Authority will hold 10% on behalf of government entities, while 50% will be offered to Kuwaiti citizens through a public subscription process.

    Al-Zour North IWPP phases two and three is owned by the Kuwait Authority for Partnership Projects (Kapp) and the Ministry of Electricity, Water & Renewable Energy.

    It will be developed under a build-operate-transfer model with a 25-year offtake agreement.

    Sepco3 is the EPC contractor for the project.

    The project company has been set up with an authorised and issued capital of KD197.032m ($639m).

    This capital is divided into 1.97 billion shares, each with a nominal value of 100 fils. The paid-up capital at the time of establishment is KD49.2m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14963914/main.jpg
    Mark Dowdall