Adnoc L&S, Borouge sign deal to boost UAE petrochemical exports

Borouge and Adnoc Logistics & Services (Adnoc L&S) have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the UAE.

The mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dhs1,950 million), supporting the next phase of Borouge’s accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 million in cost savings and efficiencies in the first five years alone, and enhancing the company’s supply chain network.

The agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi.

Adnoc L&S will manage the transportation of up to 70 per cent of Borouge’s annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. It will deploy a minimum of two dedicated container feeder ships to transport Borouge’s products from Al Ruwais to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.

Hazeem Sultan Al Suwaidi, CEO of Borouge, commented, “This agreement builds on our long-standing collaboration with Adnoc L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets.

“It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network.”

“With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand.”

As Borouge plans to ramp up production capacity by 1.4 million tonnes per annum by the end of 2026 through its Borouge 4 mega project, Borouge will become the world’s largest single-site polyolefin complex.

The partnership with Adnoc L&S will further enhance Borouge’s supply chain efficiency as well as reinforcing Adnoc L&S’ commitment to delivering innovative, integrated supply chain solutions that enhance trade, strengthen industrial resilience, and support the UAE’s vision for economic diversification and global leadership.

Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, “This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge, delivering on Adnoc L&S’ strategy to provide seamless, end-to-end logistics solutions that power the UAE’s industrial growth and export ambitions.

By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge’s world-class petrochemical products reach global markets efficiently and competitively.”

WAM