Austrian polyolefins supplier Borealis AG and Abu Dhabi National Oil Co. (Adnoc) have signed a memorandum of understanding to explore potential growth opportunities within the polyolefin industry.
Under the terms of the agreement, Borealis and Adnoc will build on their joint success in the Dubai-based Borouge joint venture, which was founded by the two companies in 1998.
The partners will focus on the expertise which helped bolster the success of Borouge and will explore potential growth opportunities within the integrated polyolefin industry in key geographical markets, Borealis said March 23.
“A sustainable development in Asia and the Middle East will show an increasing need and demand for high value, innovative polyolefin solutions,” Borealis CEO Alfred Stern said.
Borealis will contribute its proprietary technologies and market expertise to the new partnership with Adnoc, which is following its own downstream expansion strategy, launched mid-year last year.
“Adnoc is pursuing investments that will maximize value from our existing resources and secure more effective market access for our expanding portfolio of products,” said Ahmed Al Jaber, minister of state for the United Arab Emirates and Adnoc CEO.
As part of its 2030 smart growth strategy, Adnoc has recently embarked on a significant expansion of its downstream business. The company's $45 billion investment plan aims at creating “the world's largest integrated refining and petrochemicals complex” in Ruwais, Abu Dhabi.
The UAE company aims to triple production of petrochemicals to 14.4 million metric tons per year by 2025.