Borouge Signs Strategic Agreement with ADNOC L&S to Boost Petrochemical Exports

Dubai: In a significant move aimed at strengthening the UAE’s petrochemical exports, Borouge has entered into a long-term strategic partnership with ADNOC Logistics & Services (ADNOC L&S).

Under the 15-year service agreement, ADNOC L&S will provide port management, container handling, and feeder ship services for Borouge’s operations at the Al Ruwais Industrial City Container Terminal. The deal is expected to deliver a minimum guaranteed value of AED 1.95 billion (USD 531 million), supporting Borouge’s next phase of accelerated global growth.

Boost to Export Capacity and Cost Efficiency

The partnership will significantly enhance Borouge’s production and export capacity, aligning with the company’s strategic expansion goals. As part of the deal, ADNOC L&S will handle up to 70% of Borouge’s annual production, a figure set to rise with the completion of the Borouge 4 expansion project.

Additionally, the agreement is expected to generate substantial operational cost savings—exceeding USD 50 million within the first five years alone—through improved logistics efficiencies and streamlined port operations.

Dedicated Feeder Ship Deployment

To facilitate smoother export logistics, ADNOC L&S will deploy a minimum of two dedicated container feeder vessels to transport Borouge’s products from Al Ruwais to the UAE’s major deepwater ports: Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.

This collaboration not only strengthens the local supply chain ecosystem but also underscores ADNOC Group’s ongoing commitment to vertical integration across its business divisions, enhancing global market access for UAE-manufactured petrochemicals.