Expects to enhance its Logistic Variable Costs (LVC) over the full contract term
Borouge and ADNOC Logistics & Services Plc (ADNOC L&S) 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 US$ 531mn, (AED 1,950mn) supporting the next phase of Borouge’s accelerated growth plans, driving operational cost savings over the full contract term, realising more than US$ 50mn 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.
Advancing capabilities
“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,” commented Hazeem Sultan Al Suwaidi, CEO, Borouge,
As Borouge plans to ramp up production capacity by 1.4mn tonnes per annum by the end of 2026 through its Borouge 4 mega project, Borouge will become the world’s largest single-site polyolefin complex.
“By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge’s world-class petrochemical products reach global markets efficiently and competitively,” stressed Captain Abdulkareem Al Masabi, CEO, ADNOC L&S.
