ADNOC and OMV advance formation of Borouge Group International AG

B4 is a new integrated polyolefins production complex with a 1.5 million t ethane cracker and 1.4 million t of polyethylene capacity, with the first plant expected to start-up in the coming months. Boasting proprietary Borstar® technology to produce advanced, high-premium polyethylene, B4 is 70% owned by ADNOC and 30% by OMV, and forms part of the Borouge production site, set to become the world’s largest single-site polyolefins complex.

The agreement enables Borouge Plc, and subsequently Borouge Group International AG, to operate and market the volumes of B4 in return for an at-cost asset utilisation fee. It will provide both entities with financial flexibility while delivering an estimated US$400 million in cumulative net profit over the next three years, representing approximately 10% annual accretion to Borouge Plc earnings post ramp up. It is anticipated that the agreement for B4 will be maintained until Borouge Group International AG acquires the asset from its current owners, which is currently not expected before 2029, thereby providing flexibility on the timing of future capital outlays.

B4 operations are expected to ramp up progressively throughout 2026 and with the signing of the agreement, Borouge Group International AG will have access to 13.6 million t of nameplate production capacity across Europe, the Middle East, and North America, positioning the company as the world’s fourth largest polyolefins producer. The combined entity is expected to continue delivering a best-in-class margin profile and generate significant synergies.

Robust capital structure recognised by strong credit ratings

Borouge Group International AG is expected to receive A (Negative) / Baa1 (Stable) / A- (Stable) ratings from S&P, Moody’s and Fitch, respectively, confirming its strong financial position and capital structure. ADNOC and OMV are committed to maintaining investment grade credit ratings for Borouge Group International AG.

Borouge Group International AG will benefit from one of the most geographically diversified platforms in the polyolefins sector, integrating production across three continents and serving customers internationally. This global reach, combined with long-term shareholders and a robust capital structure, will deliver resilience throughout the business cycle and an unmatched ability to drive sustainable shareholder returns.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/24032026/adnoc-and-omv-advance-formation-of-borouge-group-international-ag/