ADNOC Logistics & Services (ADNOC L&S) has secured a 15-year contract with its compatriot polyolefins major, Borouge, to manage logistics for more than half of its annual petrochemicals output.
The deal, valued at $531m, covers port management, container handling, and feeder container ship services for the Borouge container terminal in Al Ruwais Industrial City, Abu Dhabi.
Founded in 1998, Borouge is a joint venture between the Abu Dhabi National Oil Company (ADNOC), which holds a 54% stake, and Borealis, a company majority-owned by Austria’s OMV. Borouge operates one of the world’s largest integrated polyolefin production facilities, providing materials for sectors such as infrastructure, mobility, healthcare, energy, agriculture, and advanced packaging.
Under the agreement, ADNOC L&S will manage the transportation of up to 70% of Borouge’s production, which is expected to increase by an estimated 1.4m tonnes per annum by the end of 2026 following the completion of the Borouge 4 plant expansion project.
The shipping and maritime logistics arm of ADNOC said it will deploy at least two feeder ships to transport products to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.
The two companies said the agreement should bring Borouge more than $50m in cost savings and efficiencies in the first five years.
