Borouge, the petrochemicals joint venture between Abu Dhabi National Oil Company (Adnoc) and Austria’s Borealis, has increased its production capacity utilisation to 90 percent as of October. This marks a significant rebound from earlier in the year when the company faced supply chain disruptions in the region.
In the second quarter, Borouge’s average capacity utilisation dropped to 60 percent due to constraints in feedstock supply, notably ethane availability. However, improvements during the third quarter enabled the company to raise its utilisation rate to 76 percent. The steady recovery culminated in the current utilisation level of 90 percent, reflecting a near-full operational capacity.
Despite ongoing regional challenges, Borouge has continued to supply products to international customers without relying on the Strait of Hormuz, a strategic shipping route often subject to geopolitical tensions. The company’s capacity to maintain product shipments while restoring production highlights its resilience amid supply chain pressures.
Borouge’s performance recovery is crucial given the global demand for petrochemical products and the company's role in the region’s chemical industry. The joint venture plays a key part in linking Abu Dhabi’s hydrocarbon resources to international markets through value-added petrochemical production.
