Borouge awards $531m logistics contract to ADNOC L&S

Borouge has signed a 15-year logistics agreement with ADNOC Logistics and Services (ADNOC L&S) worth AED1.95 billion ($531 million), under which ADNOC L&S will manage the transport of up to 70 per cent of Borouge’s annual production.

The agreement, announced on June 11, includes port and container terminal management, container handling, and feeder ship operations at the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi. ADNOC L&S will deploy at least two dedicated feeder container vessels to ship cargo from Al Ruwais to the ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.

Borouge stated that the contract is expected to result in more than $50 million in logistics-related cost savings during the first five years and improve its logistics variable costs over the full contract term.

Borouge said the contract would support its capacity expansion, with production to increase by 1.4 million tonnes per year by the end of 2026 through the Borouge 4 project. The company said that once completed, the plant would make its site the world’s largest integrated polyolefin production complex.

ADNOC L&S will be responsible for overseeing terminal operations and managing end-to-end logistics between Al Ruwais and key deepwater ports, which Borouge said will support its supply chain as it targets markets across Asia, the Middle East and Africa.