ADNOC Logistics & Services Signs $531 Million Deal with Borouge for Petrochemical Exports

ADNOC Logistics & Services Plc (ADNOC L&S) has recently announced a groundbreaking 15-year strategic partnership agreement with Borouge, valued at $531 million. The agreement aims to enhance the management of shipping and port logistics for Borouge’s expanding petrochemical exports.

Under this agreement, ADNOC L&S will serve as the primary logistics provider for up to 70% of Borouge’s annual production. This includes overseeing container handling, port operations, and feeder shipping services from Al Ruwais Industrial City to the deepwater ports of Jebel Ali and Khalifa Port.

As part of the deal, ADNOC L&S will deploy at least two dedicated feeder container ships to optimize Borouge’s export flows. The partnership is projected to generate over $50 million in logistics-related cost savings for Borouge within the first five years of operation.

Driving Growth and Efficiency

“This milestone agreement reinforces ADNOC L&S’ position as a fully integrated logistics and maritime champion. We are committed to supporting Borouge’s growth by providing reliable and efficient shipping solutions that contribute to the UAE’s standing as a global trade hub,” stated Abdulkareem Al Masabi, CEO of ADNOC L&S.

Furthermore, this partnership expands ADNOC L&S’ range of port and container terminal services as it seeks to expand internationally and strengthen its end-to-end logistics offerings across the energy and industrial sectors.

Facilitating Borouge’s Expansion

The service agreement with Borouge comes at a pivotal time as the company prepares to ramp up production through its Borouge 4 expansion project, which aims to add 1.4 million tonnes of capacity per year by 2026. ADNOC L&S’ integrated support will play a crucial role in facilitating the scaling of exports to key markets in Asia, the Middle East, and Africa.

This partnership underscores the commitment of both ADNOC L&S and Borouge to driving growth, enhancing operational efficiency, and solidifying the UAE’s position as a key player in the global petrochemical industry.

With this strategic collaboration in place, both companies are poised to achieve new milestones in the realm of logistics and maritime services, setting the stage for continued success and innovation in the years to come.