The Abu Dhabi National Oil Company (ADNOC) has agreed to spend $6.2 billion to expand its polyolefin Borouge factory, making it the world's largest producer of this type of plastic.

According to the Abu Dhabi government media office, the agreement with Austrian chemicals giant Borealis will see the Borouge 4 facility erected within the current plastics complex in Ruwais, United Arab Emirates, expanding production to 6.4 million tonnes of polyolefin a year.

Polyolefin is used to manufacture industrial-grade pipelines, cables, films, and personal protective equipment, among other things.

"Borouge 4 will capitalise on the predicted expansion in consumer demand for polyolefins, driven by their application in manufactured products in the Middle East, Africa, and Asia," the Abu Dhabi government said.

Borouge 4, which would cover an area the size of 500 football fields, is expected to be completed by the end of 2025.

"The announcement underscores the continued attractiveness of Abu Dhabi and the UAE as a world-leading investment and partnership destination, and underpins the robust value offering from our downstream, industry, and petrochemicals sector to key global industry partners and investors," said Sultan Ahmed Al Jaber, ADNOC chief executive and minister of industry.

"With this development, Borouge will become the world's largest single-site polyolefin complex," he added.

According to the company, a carbon capture unit that would reduce CO2 emissions by 80% might be operational in time for the start-up of Borouge 4 if an in-depth investigation is completed.

The first Borouge plant went online in 2001, with Borouge 2 following in 2010 and Borouge 3 following in 2014. Polypropylene and polyethylene plastics are also produced in the plant.