Borouge and ADNOC Logistics & Services have signed a 15-year logistics agreement valued at $531 million to support rising production and exports from the UAE’s petrochemical sector.
Under the contract, ADNOC L&S will manage port operations, container handling, and shipping services for Borouge’s terminal in Al Ruwais Industrial City, Abu Dhabi. The deal includes the deployment of two dedicated feeder ships that will transport up to 70% of Borouge’s annual output to Jebel Ali and Khalifa Port.
The agreement precedes a planned expansion of Borouge’s output capacity by 1.4 million tonnes per year by the end of 2026 through its Borouge 4 complex. Once complete, the site will become the world’s largest single-site polyolefin production facility. Polyolefins are used in a range of consumer and industrial goods, including packaging, construction materials, and automotive parts.
According to Borouge, the partnership is expected to generate more than $50 million in cost savings and operational efficiencies over the first five years, as the company expands its supply chain to meet growing demand from Asia and other export markets. The deal will also integrate with Borouge’s existing rail logistics to enhance network flexibility.
The deal comes as the UAE continues to invest in petrochemicals and logistics infrastructure as part of its broader economic diversification strategy. Borouge is a joint venture between ADNOC and Austria’s Borealis AG. ADNOC holds a majority stake in ADNOC L&S, which listed on the Abu Dhabi Securities Exchange in 2023.
