{"id":86897,"date":"2025-06-12T00:00:00","date_gmt":"2025-06-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/12\/borouge-adnoc-ls-form-petrochemicals-exports-partnership\/"},"modified":"2025-06-12T00:00:00","modified_gmt":"2025-06-12T00:00:00","slug":"borouge-adnoc-ls-form-petrochemicals-exports-partnership","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/12\/borouge-adnoc-ls-form-petrochemicals-exports-partnership\/","title":{"rendered":"Borouge, Adnoc L&S form petrochemicals exports partnership"},"content":{"rendered":"

Adnoc Logistics & Service (Adnoc L&S) has entered into a 15-year partnership with <\/strong>Borouge to expand the production and export of petrochemicals from the Emirates<\/strong>, according to a <\/span>statement (pdf).<\/a> The agreement is expected to generate USD 531 mn (c. AED 2 bn) in value as well as USD 50 mn (c. AED 183.6 mn) in cost savings and efficiencies in the first five years, the statements said.<\/span><\/p>\n

REMEMBER-<\/strong> Adnoc and Austria\u2019s OMV finalized terms of an agreement to merge<\/a> their polyolefins businesses after years of negotiations in March. The move created the petrochemicals JV Borouge International \u2014 a USD 60 bn global polyolefins player set to be the world\u2019s fourth largest. The merged business, based in Austria with a regional HQ in the UAE, will have a capacity of 13.6 mn tonnes per year across Europe, the Middle East, and North America.<\/p>\n

What\u2019s in the cards:<\/strong> Adnoc L&S will oversee the transportation of up to 70% of Borouge\u2019s annual production \u2014 offering its port management, container handling, and feeder container ship services for Borouge\u2019s Al Ruwais Industrial City container terminal. Adnoc L&S is set to dispatch at least two container feeder ships to convey output from Al Ruwais to the ports of Jebel Ali and Khalifa Port. <\/p>\n

Borouge is set to increase production:<\/strong> In a bid to maximize the output of its polyolefin complex, the firm is pursuing its Borouge 4 mega project, which is expected to boost production capacity by 1.4 mn tonnes per annum by the end of 2026. Adnoc petrochemicals JV Borouge inked two contracts<\/a> for expansion projects \u2014 which combined with the Borouge 4 mega project \u2014 aim to boost its production capacity to over 6.6 mn per tonnes per annum (tpa) by 2028. The projects are poised to generate between AED 600 mn and AED 730 mn in annual EBITDA.<\/p>\n

What they said:<\/strong> \u201c[The partnership] 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,\u201d Borouge CEO Hazeem Sultan Al Suwaidi said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The partnership will see Adnoc L&S transport 70% of Borouge\u2019s annual output and is expected to generate USD 531 mn<\/p>\n","protected":false},"author":1,"featured_media":86898,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[41],"tags":[183,317,32,129],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-86897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade","tag-adnoc","tag-adnoc-logistics","tag-trade","tag-uae","wpautop","entry"],"acf":{"mongo_id":"b37ccec4-16d9-4b8f-8e49-9ad563198813","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/6\/627.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Adnoc L&S forms USD 531 mn petrochemical exports partnership with Borouge","related_issue":[86887],"teaser":"The partnership will see Adnoc L&S transport 70% of Borouge\u2019s annual output and is expected to generate USD 531 mn","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/6\/.fef61a1e-f162-4d25-8beb-841bbe040466.mp3"},"yoast_head":"\nBorouge, Adnoc L&S form petrochemicals exports partnership - 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