Borouge Plc and ADNOC Logistics & Services Plc (ADNOC L&S) have announced a significant 15-year strategic partnership aimed at increasing the production and export of petrochemicals from the UAE. This collaboration is expected to enable a substantial rise in Borouge’s output, particularly following the expansion of the Borouge 4 plant.

The partnership will involve ADNOC L&S managing various logistical operations, including port management, container handling, and feeder container ship services for the Borouge Container Terminal located in Al Ruwais Industrial City, Abu Dhabi. ADNOC L&S will be responsible for transporting up to 70 percent of Borouge’s annual production, utilizing at least two dedicated container feeder ships to move 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, emphasized that this agreement builds on the existing collaboration with ADNOC L&S and is crucial for addressing the changing needs of customers in high-growth markets. He noted that the partnership will bring significant operational cost savings, improve Borouge’s Logistics Variable Cost (LVC), and enhance the flexibility of its supply chain network, especially as production capacity is set to increase by 1.4 million tonnes per annum by the end of 2026 due to the Borouge 4 mega project.

With this expansion, Borouge is positioned to become the world’s largest single-site polyolefin complex. The partnership with ADNOC L&S is expected to bolster Borouge’s supply chain efficiency and reinforces ADNOC L&S’ commitment to providing innovative logistics solutions that support the UAE’s economic diversification and global leadership goals.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, remarked that this container terminal agreement represents a crucial milestone in their partnership with Borouge. He highlighted that ADNOC L&S aims to deliver seamless logistics solutions that facilitate the UAE’s industrial growth and export ambitions. The company’s integrated logistics capabilities will ensure that Borouge’s world-class petrochemical products reach international markets effectively and competitively.

As ADNOC L&S expands its international presence, it continues to provide comprehensive logistics solutions for various sectors, responding to the increasing global demand for petrochemical products.