ADNOC and OMV announced on March 19 strong progress toward forming Borouge Group International AG, including the signing of an Asset Usage Agreement for the Borouge 4 production complex. The companies said the transaction, which combines Borouge Plc and Borealis with the acquisition of Nova Chemicals, is expected to close by the end of March 2026, subject to customary conditions.
The agreement allows Borouge Plc to operate and market volumes from Borouge 4 in return for an at-cost asset utilization fee. This arrangement is projected to deliver USD 400 million in cumulative net profit over three years and approximately 10% annual earnings accretion after full ramp up. The companies said this will enhance operational flexibility for Borouge Group International AG, create value for shareholders, and support future dividend payments.
Borouge 4 is a new integrated polyolefins production complex featuring a 1.5 million tonnes ethane cracker and a polyethylene capacity of 1.4 million tonnes. It is owned by ADNOC (70%) and OMV (30%), with its first plant expected to start up this quarter. Once operational, Borouge Group International AG will have access to a total nameplate production capacity of 13.6 million tonnes across Europe, the Middle East, and North America, positioning it as the world’s fourth largest polyolefins producer.
The combined entity is anticipated to receive strong investment grade ratings—A (Negative) from S&P, Baa1 (Stable) from Moody’s, and A- (Stable) from Fitch—reflecting its robust financial position. The company will benefit from a geographically diversified platform integrating production across three continents.
The timing of Borouge Group International AG’s proposed listing will align with its future equity raise to maximize shareholder value. Until then, it will remain privately held while Borouge Plc shares continue trading on the Abu Dhabi Securities Exchange. Upon completion of these transactions, ADNOC’s stake in Borouge Group International AG will be transferred to XRG, ADNOC’s wholly owned subsidiary focused on global chemicals investments.
