Abu Dhabi’s ADNOC Logistics & Services Plc (ADNOC L&S) has won a 15-year contract with Borouge Plc to manage logistics on up to 70% of its annual production.
The companies entered into a $531m strategic partnership with the aim to boost the production and export of petrochemicals from the United Arab Emirates.
The agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi.
Borouge plans to ramp up production capacity by 1.4 million tonnes per annum by the end of 2026 through its Borouge 4 mega project.
Under the deal, ADNOC L&S will manage the transportation of up to 70% of Borouge’s annual production, which is expected to increase following the completion of the Borouge 4 plant expansion.
ADNOC L&S said it will deploy a minimum of two dedicated container feeder ships to transport Borouge’s products from Al Ruwais to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi.
The contract is expected to drive more than $50m in cost savings in the first five years, ADNOC L&S added.
“This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge, delivering on ADNOC L&S’ strategy to provide seamless, end-to-end logistics solutions that power the UAE’s industrial growth and export ambitions,” captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said.
