Borouge awards ADNOC L&S 15-year contract to manage logistics on up to 70% of its annual production
GPCA Full Member Borouge and ADNOC Logistics & Services have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the UAE.
The mutually beneficial service agreement will deliver a minimum guaranteed value of USD 531 million, supporting the next phase of Borouge’s accelerated growth plans, driving operational cost savings, realizing more than USD 50 million in cost savings and efficiencies in the first five years alone, and enhancing the company’s supply chain network.
The agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi.
ADNOC L&S will manage the transportation of up to 70% of Borouge’s annual production, which will increase significantly following the completion of the Borouge 4 plant expansion.
ADNOC L&S will deploy a minimum of two dedicated container feeder ships to transport Borouge’s products from Al Ruwais to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.
Hazeem Sultan Al Suwaidi, CEO of Borouge, welcomed the agreement: “This agreement builds on our longstanding collaboration with ADNOC L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets.”
As Borouge plans to ramp up production capacity by 1.4 million tons per annum by the end of 2026 through its Borouge 4 mega project, Borouge is expected to become the world’s largest single-site polyolefin complex.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge.”
Source: Borouge