Borouge And ADNOC L&S Establish $531 Million Partnership To Boost UAE Petrochemical Exports

Borouge Plc and ADNOC Logistics & Services Plc (ADNOC L&S) have formed a 15-year strategic partnership to boost petrochemical production and export from the UAE. This agreement guarantees a minimum value of $531 million (AED1,950 million), supporting Borouge's growth plans. It aims to save over $50 million in costs within the first five years by enhancing the supply chain network.

The agreement involves port management, container handling, and feeder ship services at Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi. ADNOC L&S will manage up to 70% of Borouge’s annual production transport, which will rise significantly after the Borouge 4 plant expansion. Two dedicated container feeder ships will move products to Jebel Ali and Khalifa Port.

Hazeem Sultan Al Suwaidi, CEO of Borouge, stated that this collaboration with ADNOC L&S is crucial for meeting customer needs in high-growth markets. He said, "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." The partnership enhances operational cost savings and logistics flexibility while supporting increased production capacity.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, highlighted the significance of this agreement as a milestone in their partnership with Borouge. He remarked, "This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge." The focus is on providing seamless logistics solutions that support UAE's industrial growth and export goals.

As part of its strategy, ADNOC L&S leverages its maritime expertise to ensure efficient global market access for Borouge’s petrochemical products. Their integrated logistics capabilities include managing terminal operations and feeder services to meet rising global demand. This aligns with ADNOC L&S' goal of expanding its international presence by offering comprehensive logistics solutions across various sectors.

Future Expansion Plans

Borouge plans to increase production capacity by 1.4 million tonnes annually by 2026 through its Borouge 4 mega project. This expansion will make it the largest single-site polyolefin complex globally. The partnership with ADNOC L&S will further enhance supply chain efficiency while reinforcing ADNOC L&S’ commitment to innovative supply chain solutions that bolster trade and industrial resilience.

This strategic alliance between Borouge and ADNOC L&S not only supports economic diversification but also strengthens UAE's position as a leader in global trade. By focusing on integrated logistics solutions, both companies aim to meet growing international demands efficiently and competitively.

With inputs from WAM