- Under new 25-year agreement, ADNOC Logistics & Services (ADNOC L&S) will provide Borouge with integrated logistics solutions at Khalifa Port, supporting the cost efficient, reliable export of Borouge products to customers globally
- Collaboration will contribute to UAE In-Country Value, with 85% of its value flowing back to the UAE’s economy, helping development of critical local supply chain functions
- Competitive, optimised logistics solution supports Borouge’s ambitious industrial growth strategy, and strengthens local supply chains to meet global customer demand
- Partnership reinforces ADNOC L&S’ position as the region’s foremost provider of integrated logistics and marine services
Abu Dhabi, UAE – December 14, 2021: Borouge, a leading petrochemical company providing innovative, value-creating polyolefin solutions, announced today a new long-term agreement with ADNOC Logistics and Services (ADNOC L&S). Through this partnership, ADNOC L&S will manage integrated logistics for Borouge to a new main logistical hub at Khalifa Port and KIZAD in Abu Dhabi.
The new agreement covers transportation and handling operations for Borouge-manufactured polymer products at Khalifa Port for export to international markets, complementing existing agreements between the two companies. Furthermore, the new agreement will optimise the manufacturing and distribution value chain for Borouge and improve cost per unit, enabling competitive downstream growth of ADNOC’s petrochemicals and polymers business.
Under the terms of the agreement, both partners will harness their strengths to boost the UAE’s In-Country Value (ICV). The new agreement will see 85% of its value flow back to the UAE’s economy, accelerating the development of critical local supply chain functions. The partnership highlights the commitment of both partners to prioritise ICV, and power the growth of the UAE economy and its development.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Abu Dhabi Polymers Company (Borouge), commented: “Our strategic collaboration with ADNOC L&S is key to realising our growth strategy and ambitions. The expansion of our agreement enables us to unlock further opportunities in the UAE and enhance local supply chains. Together, we are driving synergies to support the UAE’s economic diversification and building on the competitiveness of our national industries.”
Speaking on the new agreement, Captain Abdulkareem Al Masabi, Chief Executive Officer of ADNOC L&S, said: “ADNOC L&S with the support of Borouge, has established a strong track record of delivery across all contracted services. With the inclusion of Borouge’s UAE Gateway agreement, we have an expanded partnership that will cover all of Borouge’s logistics requirements from production site, to feeder vessel services to main port logistics. As part of our smart growth strategy leading up to 2030, we are committed to providing integrated services for our customers, strengthening our position as ADNOC Group’s logistics platform and delivering more efficiency. We will continue to invest in long-term partnerships which generate greater value from our operations within the UAE.”
Rainer Hoefling, Chief Executive Officer of Borouge Pte, stated: “The latest agreement will increase our operational efficiencies and strengthen our relationships with our value-chain partners. The partnership plays a critical role in maximising our value proposition and helps us pivot with industry trends. Our collaboration will further develop the delivery of our sustainable and differentiated solutions, to meet growing global customer demands.”
In addition to this agreement, ADNOC L&S already manages logistics services for Borouge in AL Ruways which include packaging, port operations and feeder services. With their expertise and great collaboration this long-term agreement will serve us to achieve even greater efficiencies and excellence in the future.
A joint venture between ADNOC and Borealis, Borouge is a leading petrochemicals company that provides innovative plastics solutions for the energy, infrastructure, mobility, packaging, healthcare and agriculture industries. Following the fourth world–scale expansion, Borouge will become the world's largest single-site polyolefin complex by 2025, with an overall production capacity of 6.4 million tonnes annually. www.borouge.com
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification. To find out more, visit: www.adnoc.ae
About ADNOC L&S
As the maritime logistics arm of ADNOC Group, ADNOC L&S supports the entire oil and gas supply chain in the UAE through three major business segments: shipping, integrated logistics and marine services. It provides safe, reliable and cost-efficient maritime and logistics solutions to ADNOC Group companies and more than 100 global customers in over 50 countries.
For further information, please contact:
REHAB OMAR ATEEQ, Vice President Global Communications, Borouge
T +97150 9000 786, Rehab.Ateeq@borouge.com