ADNOC Logistics & Services announced on Wednesday a $531 million strategic partnership with polyolefins producer Borouge to enhance the UAE’s petrochemicals production and export capabilities.
As part of the agreement, Borouge has awarded ADNOC L&S a 15‑year contract to manage logistics for up to 70% of its annual production, a share expected to rise significantly upon completion of the Borouge 4 plant expansion, according to a filing on the Abu Dhabi Securities Exchange (ADX).
According to the filing, “the mutually beneficial service agreement will deliver a minimum guaranteed value of $531 m, supporting the next phase of Borouge’s accelerated growth plans, driving operational cost savings over the full contract term.”
The agreement covers port management, container handling, and feeder‑ship services for the Borouge container terminal in Al Ruwais.
ADNOC L&S will deploy at least two dedicated feeder vessels to transport products from Al Ruwais to Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.
The deal is projected to yield over $50 million in cost savings and efficiencies for Borouge during the first five years, while strengthening its supply‑chain network.
Separately, Borouge is preparing to merge with Austria’s Borealis and Canada’s Nova Chemicals, with the transaction expected to close in Q1 2026.
ADNOC Logistics & Services is the maritime logistics and marine services division of the Abu Dhabi National Oil Company (ADNOC). It offers container terminal management, feeder‑vessel services, port operations, and integrated supply‑chain solutions across the UAE and globally.
Borouge Borouge is a joint venture between ADNOC (54%) and Austria’s Borealis (46%), founded in 1998. It operates a polyolefin complex in Al Ruwais Industrial City, producing polyethylene and polypropylene for infrastructure, packaging, healthcare, and other applications. Following completion of its Borouge 4 expansion, scheduled by end‑2026, it is set to be the largest single‑site polyolefin complex globally, boosting annual capacity by 1.4 million tonnes.