Borouge awards US$530 mn contract to Adnoc Logistics to drive petchem exports

UAE polyolefins maker Borouge has awarded a US$531 million contract to Adnoc Logistics and Services aimed at streamlining maritime deliveries and boosting the UAE’s petrochemical exports.

The 15-year partnership will see Adnoc L&S manage the transportation of up to 70% of Borouge’s annual production, to Khalifa Port in Abu Dhabi and Jebel Ali in Dubai, the companies said recently.

A minimum of two vessels will be dedicated for the operations, they said.

Borouge’s petrochemical output capacity is expected to increase by 1.4 million tonnes/year after the expansion at its Borouge 4 plant is completed, which would make it the world’s largest single-site polyolefin complex, it said.

The partnership will also support the next phase of Borouge’s growth strategy, underpinned by a focus on optimising operations, the companies said. The contract is expected to drive more than US$50 million in cost savings in the first five years, they added.

The energy and industrial sectors are among the key pillars of UAE’s economy and companies in the sector have continued to boost investments and partnerships to drive efficiencies and improve their bottom lines.

Abu Dhabi has been at the forefront of this strategy, with its vast resources, stable of companies and commitment to drive economic growth through its various industrial programmes.

Borouge, a joint venture between UAE state energy company Adnoc and Austrian chemicals producer Borealis, was established in 1998.

In May 2022, Borouge raised US$2 billion through an IPO and was listed on the Abu Dhabi Securities Exchange. The IPO, which was about 42 times oversubscribed, was the largest listing in Abu Dhabi at the time.

Adnoc L&S delivers dry bulk and energy products to more than 100 customers in about 50 countries through its three business units, including integrated logistics, shipping and marine services.