Page 163 - CW E-Magazine (18-3-2025)

News from Abroad

CONSOLIDATION
ADNOC and OMV to combine polyolefin businesses

to create $60-bn giant

Abu Dhabi National Oil Company formation into an integrated sustain- chemicals sector”, ADNOC Group
(ADNOC) and Austrian energy major, able chemicals, fuels, and energy com- CEO Mr. Sultan Al Jaber said. The
OMV, have inked a binding deal to pany,” commented Mr. Alfred Stern, new firm will have a two-tier board
merge their polyolefin businesses to Chairman of the Executive Board and structure with governance and voting
create a petrochemicals powerhouse with CEO of OMV. The tie-up “solidifies rights split equally between OMV and
a $60-bn enterprise value. Abu Dhabi’s status as a leader in the ADNOC. The new company will be

The new company named Borouge complexity of the deal, and in particular listed in Abu Dhabi with the possibility
Group International, will be headquar- the deal for Nova Chemicals. of listing in Vienna in 2027.
tered and domiciled in Vienna, Austria,
with regional headquarters in Abu Borouge 4, the ethylene and poly- ADNOC had already agreed in
Dhabi. It is set to be the fourth largest ethylene expansion project to Bor- October to buy German chemicals maker
polyolefins firm by production capacity, ouge’s production facilities in the Covestro for Euro 14.7-bn including
behind China’s Sinopec and CNPC and UAE, will be developed outside of debt. Nova can produce 2.6-million met-
US-based ExxonMobil. Borouge Group International. It is ric tons of polyethylene a year and 4.2-
envisaged to be recontributed to Bor- million tons of ethylene. The companies
OMV and ADNOC will have equal ouge Group International at the end expect Borouge Group International to
shareholdings of 46.94% each and equal of 2026 once fully operational, for an generate annual cost savings of about
partnership in Borouge Group Inter- estimated $7.5-bn from OMV (30 per- $500-mn. Once complete, ADNOC’s
national following cash injection of Euro- cent share) and ADNOC (70 percent stake in Borouge Group will be trans-
1.6-bn (reduced by dividends paid out share). “These landmark transactions ferred to XRG, the state oil firm’s new
until closing) by OMV into the new com- will accelerate our growth strategy in international investment arm, ADNOC
pany. The remainder will be available as chemicals and support OMV’s trans- said.
free float. Borouge Group International LyondellBasell approves US propylene
will combine two joint ventures - Bo-
realis, 75% owned by OMV and 25% expansion project
by ADNOC, and Borouge, 54% owned
by ADNOC and 36% by Borealis. The Chemicals giant, LyondellBasell approximately 400,000 metric tons. The
merged entity will also acquire Canada’s (LYB), has announced an investment to new metathesis unit will convert ethylene
Nova Chemicals Corp from Abu Dhabi expand propylene production capacity at into propylene for use in the production
sovereign wealth fund Mubadala for its Channelview Complex near Houston, of polypropylene and propylene oxide.
$13.4-bn, including debt, as part of its US. “This capacity expansion strengthens
strategy to expand in North America, the our ability to meet increasing customer
firms said in separate statements. Groundbreaking and construction demand and improve our self-sufficiency as
are expected to begin in the third quarter we grow and upgrade a core business line
The deal, subject to regulatory of 2025, with a projected startup in for LyondellBasell,” said Ms. Kim Foley,
approvals, marks the conclusion of near- late 2028. The unit will have an annual LYB Executive Vice President, Global
ly two years of negotiations given the propylene production capacity of Olefins & Polyolefins and Refining.

Chemical Weekly March 18, 2025 163

Contents Index to Advertisers Index to Products Advertised