- B4 comprises a 1.5 Mt/y ethane cracker and 1.4 Mt/y polyethylene capacity, 70% owned by ADNOC and 30% by OMV, with first plant startup expected this quarter and progressive ramp through 2026.
- Asset Usage Agreement lets Borouge Plc market B4 volumes for an at-cost fee, expected to yield ~USD 400m cumulative net profit over three years and ~10% annual earnings accretion post-ramp, with acquisition of B4 not expected before 2029.
- Borouge Group International AG (combining Borouge Plc, Borealis and Nova Chemicals) targets close by end‑March 2026, is expected to receive S&P A / Moody's Baa1 / Fitch A- ratings, and plans a 2027 tender offer aligned with a future equity raise.
Asset Usage Agreement and B4
ADNOC and OMV signed an Asset Usage Agreement enabling Borouge Plc (and later Borouge Group International AG) to operate and market B4 volumes for an at‑cost utilization fee; B4 comprises a 1.5 Mt/y ethane cracker and 1.4 Mt/y polyethylene capacity, with first plant startup expected this quarter and progressive ramp through 2026. The Agreement is expected to deliver ~USD 400 million cumulative net profit over three years and roughly 10% annual earnings accretion to Borouge Plc post‑ramp, while allowing flexibility on timing of capital outlays and on acquisition of B4 (not expected before 2029).
Formation, timing and governance
The combination of Borouge Plc, Borealis and the planned acquisition of Nova Chemicals is progressing, with transactions close targeted by end‑March 2026 subject to customary conditions; Borouge Group International AG will remain privately held until a planned 2027 tender offer to convert Borouge Plc shares to the new company, aligned with a future equity raise. Upon completion ADNOC’s stake will transfer to XRG (an ADNOC subsidiary) and the new group will be jointly controlled 50/50 by XRG and OMV AG.
Scale, credit profile and dividends
With access to about 13.6 Mt of nameplate polyolefins capacity across Europe, the Middle East and North America, the combined entity would rank as the world’s fourth largest polyolefins producer; expected credit ratings are S&P A (Negative), Moody’s Baa1 (Stable) and Fitch A‑ (Stable). Borouge intends to maintain an annual dividend of 16.2 fils per share after completion.
