Borouge Plc and ADNOC Logistics & Services (ADNOC L&S) have signed a 15-year strategic partnership valued at $531 million (AED 1.95 billion). This long-term agreement will streamline port and logistics operations to support Borouge’s petrochemical production growth, including its major Borouge 4 expansion project.
Strengthening Supply Chain and Logistics Capabilities
The agreement includes comprehensive port management, container handling, and container feeder shipping services at Borouge’s terminal in Al Ruwais Industrial City. ADNOC L&S will handle up to 70% of Borouge’s annual production, transporting goods from Ruwais to the Jebel Ali and Khalifa Ports using at least two dedicated feeder vessels.
This logistics arrangement is expected to generate over $50 million in cost savings within the first five years, enhancing logistics efficiency, reducing variable costs, and improving operational flexibility across the supply chain.
Scaling Up for Global Demand
With Borouge 4 set to add 1.4 million tonnes per year of production capacity by 2026, Borouge is on track to become the world’s largest single-site polyolefin complex. The logistics agreement with ADNOC L&S ensures that the increased output can be exported efficiently to high-growth global markets.
Borouge CEO Hazeem Sultan Al Suwaidi emphasized the partnership’s role in delivering differentiated, value-added products efficiently while supporting global expansion.
Driving Industrial Growth and Economic Diversification
ADNOC L&S CEO Captain Abdulkareem Al Masabi described the deal as a milestone in industrial logistics, aligning with the UAE’s strategic goals for economic diversification and trade expansion. ADNOC L&S continues to broaden its global footprint by offering integrated logistics services across sectors and geographies.
Highlights of the Agreement
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Duration: 15 years
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Minimum Value: $531 million (AED 1.95 billion)
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Expected Savings: Over $50 million in first five years
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Scope:
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Port and container terminal operations
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Feeder shipping services (Ruways to Jebel Ali & Khalifa Port)
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Supply chain optimization
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Production growth: 1.4 million tonnes/year by 2026
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Global impact: Supports UAE petrochemical exports and competitiveness
This strategic partnership marks a major advancement in the UAE’s petrochemical export infrastructure, combining Borouge’s production capacity with ADNOC L&S’ logistics strength. As the UAE scales up for global demand, the deal reinforces its position as a leading hub for sustainable, high-efficiency petrochemical trade.
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Source: Borouge
