Oil & Gas Adnoc’s listed units tie up to propel petrochemical exports By Pramod Kumar June 11, 2025, 10:22 AM Borouge/Supplied Borouge plans to ramp up production capacity by 1.4 million tonnes per annum by the end of 2026 to help increase petrochem exports Abu Dhabi-listed Borouge and Adnoc Logistics & Services (Adnoc L&S) have entered a long-term partnership to increase the export of petrochemicals from the UAE. The contract, which will span 15 years, is expected to deliver a minimum guaranteed revenue of $531 million (AED2 billion), the companies stated in a joint announcement. The earnings will support the next phase of Borouge’s growth plans, leading to more than $50 million in cost savings in the first five years alone. The partnership will also enhance Borouge’s supply chain network. The agreement covers port management, container handling and feeder container ship services for Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi. Adnoc L&S will manage the transportation of up to 70 percent of Borouge’s annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. The Adnoc subsidiary will deploy a minimum of two 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. Borouge plans to ramp up production capacity by 1.4 million tonnes per year by the end of 2026. Hazeem Sultan Al Suwaidi, CEO of Borouge, said that the company is advancing its capabilities to deliver differentiated products efficiently with a rapid increase in production capacity. Borouge proposes share buyback after merger stock slide Adnoc bets big on petrochems as sector struggles Clouds still not lifting on Saudi petrochem industry A joint venture between Adnoc and Austria’s Borealis, Borouge operates a large polyolefins complex in Al Ruwais Industrial City. Adnoc owns a majority 54 percent stake while Borealis holds a 36 percent stake. Adnoc L&S closed nearly 1 percent higher at AED4.54 on Tuesday. The share is down 17 percent year to date. On the other hand, Borouge fell 0.4 percent to close at AED2.49. However, the share price has gained 5 percent in the past 12 months. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
