Latest news with #Borouge4
Gulf Today
11-06-2025
- Business
- Gulf Today
Adnoc L&S, Borouge sign deal to boost UAE petrochemical exports
Borouge and Adnoc Logistics & Services (Adnoc L&S) have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the UAE. The mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dhs1,950 million), supporting the next phase of Borouge's accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 million in cost savings and efficiencies in the first five years alone, and enhancing the company's supply chain network. The agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi. Adnoc L&S will manage the transportation of up to 70 per cent of Borouge's annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. 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. Hazeem Sultan Al Suwaidi, CEO of Borouge, commented, 'This agreement builds on our long-standing collaboration with Adnoc L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets. 'It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network.' 'With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand.' As 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, Borouge will become the world's largest single-site polyolefin complex. The partnership with Adnoc L&S will further enhance Borouge's supply chain efficiency as well as reinforcing Adnoc L&S' commitment to delivering innovative, integrated supply chain solutions that enhance trade, strengthen industrial resilience, and support the UAE's vision for economic diversification and global leadership. Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, '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. By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively.' WAM
The National
11-06-2025
- Business
- The National
Borouge and Adnoc L&S form $531m alliance to boost UAE petrochemical exports
Abu Dhabi chemicals maker Borouge has awarded a Dh1.95 billion ($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 per cent of Borouge's annual production, to Khalifa Port in Abu Dhabi and Jebel Ali in Dubai, the companies said on Wednesday. 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 per 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. Polyolefins, known for their flexibility and resistance, are a large group of polymers used in major sectors such as textiles, packaging, automotive, construction and consumer goods. 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 $50 million in cost savings in the first five years, they added. The move is the latest in long-standing co-operation between Borouge and Adnoc L&S 'that has been instrumental in meeting the evolving needs of our customers in high-growth markets', said Hazeem Al Suwaidi, chief executive of Borouge. 'It brings significant benefits to Borouge … with the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand,' he said. 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. The latest collaboration aligns with the Adnoc L&S's strategy to provide 'seamless, end-to-end logistics solutions that power the UAE's industrial growth and export ambitions', said chief executive Abdulkareem Al Masabi. 'By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively,' Mr Al Masabi said. Borouge, a joint venture between UAE state energy company Adnoc and Austrian chemicals producer Boreali, was established in 1998. In May 2022, Borouge raised $2 billion through an initial public offering 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. After its listing, Borouge was included in the FTSE Global Equity Index Series, which is used by investors globally to guide asset-allocation decisions and support portfolio construction. 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. The company made its debut on the Abu Dhabi bourse in June 2023 after parent company Adnoc raised about Dh2.83 billion from the sale of a 19 per cent stake in the subsidiary.
Al Etihad
11-06-2025
- Business
- Al Etihad
Borouge, ADNOC L&S enter $531 million partnership to accelerate UAE petrochemical exports
11 June 2025 09:49 ABU DHABI (WAM) Borouge Plc and ADNOC Logistics & Services Plc (ADNOC L&S) have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dh1,950 million), supporting the next phase of Borouge's accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 million in cost savings and efficiencies in the first five years alone, and enhancing the company's supply chain agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu L&S will manage the transportation of up to 70 per cent of Borouge's annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. 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 Sultan Al Suwaidi, CEO of Borouge, commented, 'This agreement builds on our long-standing collaboration with ADNOC L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets."It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network. With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand."As 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, Borouge will become the world's largest single-site polyolefin partnership with ADNOC L&S will further enhance Borouge's supply chain efficiency as well as reinforce ADNOC L&S' commitment to delivering innovative, integrated supply chain solutions that enhance trade, strengthen industrial resilience, and support the UAE's vision for economic diversification and global Abdulkareem Al Masabi, CEO of ADNOC L&S, said, '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 leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively.'ADNOC L&S' integrated logistics capabilities include managing container terminal operations, feeder services, and logistics solutions to meet increasing global demand. The agreement comes as ADNOC L&S continues to grow its international presence, providing comprehensive logistics solutions for global customers across various sectors.
Fibre2Fashion
29-04-2025
- Business
- Fibre2Fashion
UAE's Borouge unveils major expansion to boost polyolefin output
Borouge Plc, a leading petrochemicals company that provides innovative and differentiated polyolefins solutions, has announced a series of strategic asset expansion projects to accelerate its growth, contributing annually between $165 million and $200 million (AED600 million - AED730 million) in EBITDA. The company has awarded two major contracts aimed at boosting the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade Borouge's second ethane unit (EU2) with an additional capacity of 230,000 tonnes per annum (tpa). This strategic project is expected to increase the EU2 cracker's capacity by 15%, delivering significant financial gains upon completion in Q4 2028. Linde Engineering was selected for its expertise in design and execution, as well as its role as the licensor of the existing EU2 cracker. The ethane used as feedstock for the EU2 cracker is supplied by ADNOC Gas and ADNOC Refining, ensuring an integrated and reliable supply chain. Borouge has launched major expansion projects to boost ethylene and polyethylene production, expected to add $165â€'$200 million in annual EBITDA. Contracts were awarded to Linde and Target Engineering to increase capacity at EU2, PE4, and PE5 units. With Borouge 4 and a proposed global merger, total capacity will exceed 6.6 million tpa by 2028, driving growth and shareholder value. Borouge has also awarded Target Engineering Construction Company an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This enhancement will increase their nameplate capacity from 540,000 to 700,000 tpa each. Leveraging Borealis Borstar Polyethylene technology, the project is scheduled to be ready for start-up in Q1 2027. Hazeem Sultan Al Suwaidi, CEO of Borouge , said: 'By increasing production at our EU2, PE4 and PE5 units, as well as delivering the Borouge 4 mega project, we are strategically positioned for accelerated growth. 'The expansions of our ethylene and polyethylene capabilities will enable Borouge to meet growing market demands, unlock new revenue streams, and further strengthen our global market position. These projects demonstrate our commitment to innovation, operational excellence, and sustainable growth.' Since 2001, Borouge has increased its annual production capacity tenfold, reaching 5 million tpa and positioning itself among the top five polyolefin producers in the Middle East and Asia Pacific. Together with the Borouge 4 mega project, these expansion projects, once fully ramped up, will increase the company's annual total polyolefins production capacity to over 6.6 million tpa by 2028. These projects are driving significant value to the UAE's economy through ADNOC's In-Country Value (ICV) program, supporting economic and industrial growth. The Company's major shareholders, ADNOC and OMV have proposed the combination of Borouge and Borealis, along with the acquisition of Nova Chemicals, to create Borouge Group International. These transformational deals will create the world's fourth largest polyolefin company, a $60 billion global polyolefins leader with a substantial capacity of 13.6 million metric tonnes across 62 plants spanning North America, Europe and the Middle East – more than doubling Borouge's current capacity. Borouge Group International represents a new era of scale, growth, innovation and shareholder value. The new entity intends to offer an attractive estimated total dividend of $2.2 billion post-closing of the transaction, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (HU)
Arabian Business
28-04-2025
- Business
- Arabian Business
Borouge expansion projects to add $200mn to its annual EBITDA
Borouge has awarded two major contracts, which will boost the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5). The asset expansion is expected to contribute between US$165 million and US$200 million in EBITDA annually. Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade EU2 with an additional capacity of 230,000 tonnes per annum (tpa). Borouge awards key contracts The company has also awarded Target Engineering Construction Company an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. Following the completion of the project in Q4 2028, the EU2 cracker's capacity will increase by 15 per cent, delivering significant financial gains. Linde was selected for its expertise in design and execution, as well as its role as the licensor of the existing EU2 cracker. PE4 and PE5 production units enhancement will increase their nameplate capacity from 540,000 to 700,000 tpa each. The project is scheduled to be ready for start-up in the first quarter of 2027. Hazeem Sultan Al Suwaidi, CEO of Borouge, commented: 'By increasing production at our EU2, PE4 and PE5 units, as well as delivering the Borouge 4 mega project, we are strategically positioned for accelerated growth. 'The expansions of our ethylene and polyethylene capabilities will enable Borouge to meet growing market demands, unlock new revenue streams, and further strengthen our global market position.' Since 2001, the company has increased its annual production capacity tenfold, reaching 5 million tpa and positioning itself among the top five polyolefin producers in the Middle East and Asia Pacific. Together, with the Borouge 4 mega project, these expansion projects will increase the company's annual total polyolefins production capacity to over 6.6 million tpa by 2028. The company's major shareholders, , along with the acquisition of Nova Chemicals, to create Borouge Group International. These will create the world's fourth largest polyolefin company, valued at US$60 billion with a capacity of 13.6 million metric tonnes across 62 plants spanning North America, Europe and the Middle East.
