Page 4 - DMEA Week 07 2022

DMEA COMMENTARY DMEA

Partners mull

IPO for Borouge

Borouge is the next on ADNOC’s IPO list as its strategy of monetising
assets and affiliates makes its way further down the value chain.

MIDDLE EAST THE backers of the Abu Dhabi Polymers Co. understood to be valued at $500mn-$1bn.
(Borouge) joint venture (JV) are reported to be The lump-sum turnkey (LSTK) packages
hiring banks to arrange an initial public offering three, four and five were all awarded to Italian
WHAT: (IPO) to float a minority share. The development EPC contractor Tecnimont and are worth a com-
ADNOC and Borealis are comes as work kicks off on the JV’s fourth facility bined total of $3.5bn. These include a polyolefin
considering listing their in the UAE’s Ruwais downstream hub. units package covering two 700,000 tpy polyeth-
Borouge JV as they work ylene (PE) units and a 1-hexene unit; a package
to expand production IPO plans for a 100,000 tpy cross-linkable PE (XLPE) unit;
capacity. State-owned Abu Dhabi National Oil Co. and one covering offsites and utilities which
(ADNOC) and Austria’s Borealis said this week includes integration of Borouge 4 with existing
WHY: that they are considering a potential IPO of a facilities and the construction of non-process
The Emirati firm has minority stake in the plastics specialist, noting buildings, roads, infrastructure, internal and
raised billions of dollars that they would provide further material updates external interfaces, tankage systems and flaring
over the past five years when appropriate. systems.
by leasing, listing or Soon after, sources close to proceedings were Bloomberg’s sources said that the companies
directly selling stakes in quoted by Bloomberg saying that Citigroup, are working separately to arrange $2.75bn in
its various businesses HSBC Holdings and First Abu Dhabi Bank had financing from international banks for the unit.
without losing control. already been hired for the IPO, adding that there Upon completion of the new units, Bor-
would be more to come. The report said that ouge will become the world’s largest single-site
WHAT NEXT: the listing, which could value Borouge at $20bn polyolefin complex, while output will be used
Petrochemicals is the or more, might take place within the next few as feedstock for ADNOC’s world-scale TA’ZIZ
latest sector to attract months, though the timeline is not yet fixed. chemicals complex within the company’s Ruwais
attention and Borouge In December, ADNOC and Borealis awarded Derivatives Park.
would follow the IPO of five engineering, procurement and construction This will have a production slate covering
Fertiglobe late last year. (EPC) packages contracts for the development 940,000 tpy of chlor-alkali, 1.1mn tpy of ethylene
of the Borouge 4 polyolefin (PO) plant follow- dichloride and 360,000 tpy of polyvinyl chloride
ing their commitment a month earlier to invest (PVC).
$6.2bn in the unit by 2025. The partners said that the combination of
The first package, which covers early EPC Borealis’ proprietary Borstar technology and
work including site preparation, was awarded to hexene co-monomer “will enable the production
local firm Al Asab General Transport and Con- of advanced packaging grades with up to 50%
tracting. Package 2 covering the facility’s 1.5mn recycled polyethylene content”.
tonne per year (tpy) ethane cracker was awarded Meanwhile, a study is ongoing for a carbon
to a consortium of France’s Technip Energies capture unit that would reduce the facility’s car-
with the local Target Engineering. The deal is bon emissions by 80%.

P4 www. NEWSBASE .com Week 07 17•February•2022