The Abu Dhabi National Oil Company (ADNOC) Logistics and Services and Borouge have announced a strategic partnership spanning 15 years, aimed at facilitating significant growth in the production and export of petrochemicals from the United Arab Emirates.
The mutually beneficial service agreement is expected to generate a value of at least AED 1.95 billion (approximately USD 531 million), supporting Borouge’s next phase of accelerated growth plans. It will also help enhance operational cost efficiencies throughout the contract period by delivering more than AED 184 million (around USD 50 million) in savings and optimizations during the first five years, as well as strengthening the company’s supply chain network.
The contract encompasses port management, container handling, and feeder vessel services for Borouge’s container port located in the Ruwais industrial area of Abu Dhabi.
According to the agreement, ADNOC Logistics and Services will manage the transport of up to 70% of Borouge’s annual production, which is set to rise notably following the completion of the Borouge 4 industrial complex expansion.
ADNOC Logistics and Services will assign two vessels to transport Borouge’s product containers from the Ruwais industrial city to Jebel Ali Port in Dubai and Khalifa Port in Abu Dhabi.
In a statement, Hazeem Sultan Al Suwaidi, CEO of Borouge, expressed that this agreement is anchored in the long-standing and robust partnership with ADNOC Logistics and Services, crucial for meeting the increasing requirements of customers in rapidly growing markets.
He added that the partnership delivers significant strategic advantages for Borouge, including operational savings, improved variable logistics costs, enhanced rail operations, and greater flexibility in Borouge’s supply chain. Borouge, with its rapid production capacity expansion, continues to refine its capabilities to offer high-quality products and solutions efficiently, aligned with the rising global demand.
As part of its expansion strategy, Borouge is preparing to boost its production capacity by 1.4 million tons annually by the end of 2026, through its mega project Borouge 4, establishing Ruwais as the largest single-site polyolefin production complex in the world.
The collaboration with ADNOC Logistics and Services is also expected to enhance Borouge’s supply chain efficiency while reinforcing ADNOC’s commitment to delivering innovative and integrated supply chain solutions that boost trade movement and industrial flexibility, supporting the UAE’s vision to diversify its economy and attain a leading global position.
Captain Abdulkareem Al Masabi, CEO of ADNOC Logistics and Services, remarked that this comprehensive agreement for the container port marks a significant milestone in their successful partnership with Borouge, aligning with ADNOC’s strategy of providing integrated logistics solutions that support the industrial growth of the UAE and enhance its export ambitions.
He noted that leveraging extensive experience in maritime and logistics sectors ensures the efficient and competitive delivery of Borouge’s high-quality petrochemical products to various global markets.
ADNOC Logistics and Services boasts comprehensive logistics capabilities that include managing container port operations, feeder vessel services, and logistical solutions to meet the growing global demand.
This agreement reflects ADNOC Logistics and Services’ ongoing efforts to solidify its international presence and provide comprehensive logistics solutions to its global client base across various sectors.