ADNOC Logistics, Borouge join hands to boost UAE petrochemical exports

SINGAPORE (ICIS)–ADNOC Logistics & Services (ADNOC L&S) on Wednesday said that it has entered into a $531-million strategic partnership with polyolefins major Borouge to boost UAE’s production and export of petrochemicals.

As part of the partnership, Borouge has awarded ADNOC L&S a 15-year contract to manage logistics on up to 70% of its annual production, “which will increase significantly following the completion of the Borouge 4 plant expansion”, ADNOC L&S said in a filing on the Abu Dhabi Securities Exchange (ADX).

ADNOC L&S is a unit of Abu Dhabi National Oil Co (ADNOC), which holds a 54% stake in Borouge. Borouge operates an integrated polyolefin complex at Al Ruwais Industrial City in Abu Dhabi.

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

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

ADNOC L&S 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.

“The mutually beneficial service agreement will deliver a minimum guaranteed value of $531m, supporting the next phase of Borouge’s accelerated growth plans, driving operational cost savings over the full contract term,” it said.

The deal could lead to more than $50 million in cost savings and efficiencies for Borouge in the first five years alone enhancing the company’s supply chain network, the company added.

ADNOC L&S’ integrated logistics capabilities include managing container terminal operations, feeder services, and logistics solutions to meet increasing global demand.

Borouge is involved in an upcoming merger with Austria’s Borealis and Canadian producer Nova Chemicals which is expected to be completed in the first quarter of 2026.