Borouge taps Adnoc L&S to boost petrochemical exports: Adnoc Logistics & Service (Adnoc L&S) has entered into a 15-year partnership with Adnoc petrochemicals JV Borouge to expand the production and export of petrochemicals from the Emirates, according to a statement(pdf). 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.

What’s in the cards: Adnoc L&S will oversee the transportation of up to 70% of Borouge’s annual production — offering its port management, container handling, and feeder container ship services for Borouge’s 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.

This comes as Borouge plans to boost production: In a bid to maximize 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 year by the end of 2026. Borouge inked two contracts for expansion projects, which, combined with the Borouge 4 mega project, aim to boost its production capacity to over 6.6 mn tonnes per annum (tpa) by 2028. The projects are poised to generate between AED 600 mn and AED 730 mn in annual EBITDA.

REMEMBER- Adnoc and Austria’s OMV finalized terms of an agreement to merge their polyolefins businesses after years of negotiations in March. The move created Borouge International — a USD 60 bn global polyolefins player set to be the world’s 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.

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