April 7, 2026 14:38

UAE-based Borouge has halted operations at the Ruwais petrochemical complex, one of the largest in the world, after debris damaged some facilities when air defences failed to intercept missiles or drones launched by Iran.

The company said there were no injuries and that fires triggered by the falling debris had been brought under control. Following the incident, production in the affected areas was suspended while the damage is assessed and repairs are carried out.

In the first quarter of 2026, Borouge achieved high utilisation rates and, in March, was able to sell a significant share of its output via alternative routes that do not pass through the Strait of Hormuz, which has been blocked by Iran.

“A global shortage of polyolefins is driving a strong recovery in prices in March which has continued in April,” the Emirati company said. “Borouge retains significant financial resilience to navigate short term operational disruption due to its strong cash generation and significant available liquidity.”

The Ruwais site — which is set to become part of Borouge International, a joint venture with Borealis and Nova Chemicals — includes an ethane cracker with almost 1.5 million tonnes per year of ethylene capacity, in addition to polyolefin plants with capacity exceeding 5 million tonnes. This will rise to 6.4 million tonnes per year once the Borouge 4 expansion project is completed.

In recent days, Sabic’s petrochemical site in Al-Jubail, Saudi Arabia, was also hit by Iranian missiles, causing fires in some units at the complex. Another major sector operator, Sadara — the joint venture between Dow and Aramco — decided to shut down the Al-Jubail cracker when hostilities broke out.

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