Borouge and ADNOC L&S Forge $531 Million Deal to Boost UAE Petrochemical Export Growth
Borouge Plc (“Borouge”) and ADNOC Logistics & Services Plc (“ADNOC L&S”) have solidified a landmark 15-year strategic partnership, representing a key milestone in advancing the United Arab Emirates’ (UAE) global petrochemical ambitions. The collaboration, valued at a guaranteed minimum of $531 million (AED 1.95 billion), is expected to significantly elevate Borouge’s export capabilities while driving substantial operational cost efficiencies and enhancing the overall supply chain ecosystem in the region.
This long-term agreement is positioned as a cornerstone of Borouge’s accelerated growth strategy, aimed at scaling up the production and distribution of its advanced petrochemical products to meet surging global demand. The partnership builds upon the historical synergy between the two entities, with ADNOC L&S playing a pivotal role in logistics and maritime services, and Borouge standing as a global leader in the production of differentiated polyolefin solutions.
Under the terms of the service agreement, ADNOC L&S will oversee the port management, container handling, and container feeder ship operations for Borouge’s Container Terminal located in Al Ruwais Industrial City, Abu Dhabi. This terminal is a crucial logistics hub for the company’s operations, serving as a launchpad for the transportation of polyolefin products to international markets.
One of the most significant elements of the partnership is ADNOC L&S’ commitment to managing the shipment of up to 70% of Borouge’s total annual production. This operational scale will grow further following the commissioning of the Borouge 4 expansion project. The Borouge 4 plant is scheduled for completion by the end of 2026 and will increase the company’s total production capacity by 1.4 million tonnes per year. Once fully operational, Borouge will hold the distinction of operating the world’s largest single-site polyolefin complex.
To support this logistics demand, ADNOC L&S will deploy a minimum of two dedicated container feeder vessels to facilitate the movement of Borouge’s products from Al Ruwais to the UAE’s major deepwater ports—Jebel Ali Port in Dubai and Khalifa Port in Abu Dhabi. These feeder services will play a critical role in enabling timely and efficient global distribution of Borouge’s growing product portfolio.
Commenting on the agreement, Hazeem Sultan Al Suwaidi, CEO of Borouge, emphasized the strategic importance of the collaboration:
“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. It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network. With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand.”
The scale and scope of this agreement are expected to yield over $50 million in cost savings and efficiency gains during the first five years alone. These savings will be achieved through improved logistics coordination, optimized resource utilization, and reduced reliance on third-party logistics providers.
From the perspective of ADNOC L&S, the agreement underscores the company’s commitment to delivering comprehensive, end-to-end maritime and logistics services that align with the broader national vision for industrial development and global competitiveness.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, remarked:
“This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge, delivering on ADNOC L&S’ strategy to provide seamless, end-to-end logistics solutions that power the UAE’s industrial growth and export ambitions. By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge’s world-class petrochemical products reach global markets efficiently and competitively.”
The agreement arrives at a pivotal time, as the UAE doubles down on its mission to become a leading global hub for the petrochemical industry. Through investments in infrastructure, innovation, and strategic partnerships, the country is positioning itself at the forefront of the global energy transition, with petrochemicals playing a key role in future industrial applications across sectors such as packaging, automotive, construction, and healthcare.
ADNOC L&S brings to the table a wealth of experience in managing complex maritime and logistics operations. As the logistics and shipping arm of ADNOC Group, the company operates one of the largest and most diversified shipping fleets in the region, complemented by advanced port and logistics infrastructure. With its expanding global footprint, ADNOC L&S is increasingly being recognized as a premier logistics service provider not only within the UAE but also in international markets.
The Borouge-ADNOC L&S agreement also supports the UAE’s broader economic diversification agenda, which seeks to reduce reliance on hydrocarbon revenues by fostering high-value, export-oriented industries. In this context, the petrochemical sector has emerged as a vital contributor, supported by robust policy frameworks, strong industrial base, and access to key international trade routes.
The Borouge 4 expansion project is central to this vision. With its advanced technological capabilities and focus on sustainability, the facility is expected to unlock new levels of efficiency, product innovation, and environmental performance. Once operational, it will enable Borouge to offer a more diversified range of high-performance polyolefin materials tailored to the specific needs of its global customer base.
Moreover, the supply chain synergies enabled by this partnership are expected to deliver long-term resilience and adaptability in an increasingly volatile global trade environment. The integration of feeder ship services with Borouge’s rail and port operations will allow for seamless multimodal transport solutions, reducing delivery times and enhancing service quality.
The long-term commitment between the two companies also sends a strong signal to the international investment community regarding the strength and maturity of the UAE’s industrial ecosystem. It showcases the strategic foresight of UAE-based firms in forging collaborations that create shared value while aligning with national priorities for sustainable development and economic resilience.
As ADNOC L&S continues to expand its logistics portfolio and global partnerships, the company remains focused on investing in cutting-edge technologies, sustainable operations, and customer-centric services. This approach not only enhances its value proposition but also reinforces its status as a key enabler of the UAE’s strategic growth sectors.
In conclusion, the $531 million agreement between Borouge and ADNOC L&S represents more than just a commercial transaction—it is a powerful testament to the strength of collaboration, innovation, and strategic planning. As the UAE moves forward with its ambitious plans to lead in the petrochemical sector, this partnership will serve as a model for how public and private sector entities can come together to drive transformational growth, achieve operational excellence, and deliver long-term economic value.
