In a landmark move set to transform the UAE's petrochemical landscape, Borouge has cemented a 15-year strategic alliance with Adnoc Logistics & Services Plc (Adnoc L&S) that will supercharge production capabilities and global export operations.
The game-changing service agreement carries a minimum guaranteed value of $531 million (Dh1.95 billion), fueling Borouge's ambitious expansion strategy while delivering substantial operational efficiencies. The partnership is projected to generate over $50 million in cost savings within just the first five years, while simultaneously optimizing the company's end-to-end supply chain network.
At the heart of this collaboration lies comprehensive management of the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi - encompassing port operations, container handling, and specialized feeder shipping services. Adnoc L&S will handle transportation for up to 70% of Borouge's annual output, with volumes set to surge following completion of the massive Borouge 4 plant expansion. The logistics provider will dedicate at least two container feeder vessels exclusively for shipping Borouge products between Al Ruwais and Dubai's Jebel Ali Port plus Abu Dhabi's Khalifa Port.
"This transformative agreement deepens our proven partnership with Adnoc L&S," stated Hazeem Sultan Al Suwaidi, CEO of Borouge. "Beyond delivering major operational savings and enhancing our Logistics Variable Cost structure, it perfectly complements our rail infrastructure while adding unprecedented flexibility across our supply chain. As we scale production capacity dramatically, this ensures we can continue delivering premium solutions efficiently amid growing worldwide demand."
The timing proves strategic as Borouge prepares to add 1.4 million tonnes per year in production capacity through its $6+ billion Borouge 4 project by late-2026 - cementing its position as the planet's largest single-site polyolefin complex. The enhanced logistics framework will not only streamline operations but also supports Abu Dhabi's broader economic diversification goals through strengthened industrial resilience and global trade leadership.
Captain Abdulkareem Al Masabi, CEO of Adnoc L&S emphasized: "Our integrated solution represents more than just containers moving between ports - it's about powering UAE industry onto the world stage through seamless logistics architecture combining maritime expertise with cutting-edge terminal management."
The deal marks another milestone in Adnoc L&S' international growth strategy as it extends comprehensive logistics solutions across multiple sectors globally - from container terminal optimization to tailored feeder networks supporting manufacturers' export ambitions.
