Borouge awards ADNOC L&S 15-year contract to accelerate growth of UAE petrochemical exports

Borouge Plc and ADNOC Logistics & Services Plc (ADNOC L&S) have entered a 15-yr strategic partnership that will support a significant increase in the production and export of petrochemicals from the UAE, said the company.

The mutually beneficial service agreement will deliver a minimum guaranteed value of $531 MM, supporting the next phase of Borouge’s accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 MM 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% of Borouge’s annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. ADNOC L&S 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 longstanding 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 MMtpy 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.”

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.

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Russia's offline primary oil refining capacity expected in July has been revised up by 21% from the previous plan to 3.2 MM tonnes (t) due to adjustments to maintenance plans, according to calculations based on data from industry sources, as per Hydrocarbonprocessing.

In particular, the plans were affected by the TAIF-NK refinery, which will halt fuel production for a month of planned maintenance from June 15, according to three industry sources.

Offline primary oil refining capacity reached 3.2 MMt in May, while in June it is expected to be 3.1 MMt.

A rise in idle capacity means that refineries use less feedstock to produce fuel, potentially making more crude available for export.

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Industrial gas major Linde will build a second carbon dioxide liquefaction plant in Freeport, Texas, doubling its capacity in the region, said the company.

The plant will liquefy crude CO2 from ethylene glycol producer MEGlobal America’s Oyster Creek facility once operational in 2027.

Linde already supplies the Oyster Creek site with oxygen from its Freeport air separation unit.

Linde’s increased capacity will help meet growing demand for CO2 in several markets including the food and beverage, dry ice, and low carbon fuels markets.

Amer Akhras, Vice-President of the US South region at Linde, said the announcement underscores the company’s commitment to supporting industrial growth across the Gulf Coast.

The CO2 complex is the first liquefaction site of its kind in the US to receive the ISCC PLUS certification from the International Sustainability and Carbon Certification.

A voluntary sustainability certificate, ISCC PLUS verifies the sustainability of various raw materials, including bio-based, renewable, and recycled materials, ensuring they meet specific environmental, social, and economic standards.
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The Polyolefin Co (S) Pte Ltd has kept its 220,000 metric tons per year polypropylene (PP) line shut since early June due to uneconomical conditions, as per Chemweek.

The company has a total capacity of around 600,000 metric tons per year. The shut line was producing block copolymer, sources added.

The company did not respond to a request for comment when reached out by Platts.

We remind, Austrian polymer producer Borealis is investing more than €100 million in a new high melt strength polypropylene (HMSPP) production line. The new production at its Burghausen, Germany, plant is scheduled to begin operations in the second half of 2026.

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Ineos said it has received its first initial batch of pyrolysis oil (pyoil) produced from recycled post-consumer waste plastics for processing into olefins at its steam cracker in Lavera, France, as per company.

The specific volume of pyoil received was not given. The company’s Olefins & Polymers Europe business took delivery of the pyoil at Lavera and will use it to produce virgin-quality polymers, it said in an announcement on June 11.

The pyoil feedstock will be used to produce recycled ethylene and propylene for onward production of recycled polyethylene and polypropylene at the company’s polymer plants at Lavera and Sarralbe in France, and Rosignano in Italy, it said.

The recycled polymers produced will help Ineos customers meet incoming EU requirements for food contact, medical and sensitive plastic packaging to have a minimum of 10% recycled content by 2030, it said.

Ineos said part of the cracker at Lavera needed to be adapted to “enable production of these innovative materials from renewable naphtha made from sources such as biomass, organic waste, or recycled materials, alongside traditional feedstocks.”

The pyoil was produced in Europe using an advanced recycling process from waste plastic packaging that was not able to be processed by mechanical recycling, Ineos said. The company did not disclose details of the supplier of the pyoil.

Ineos said the renewable nature of the products will be independently certified under the International Sustainability and Carbon Certification scheme, ISCC Plus, which validates use of renewable feedstocks through the production process using mass balance principles.

The EU’s Packaging and Packaging Waste Regulation (PPWR) has set ambitious circularity targets for recycling packaging waste for 2030 and 2040. Advanced recycling technologies will play “a critical role” in meeting growing demand for recycled materials needed to achieve minimum levels of recycled content in plastic packaging, according to Ineos.

Ineos took full ownership of the steam cracker and polymer plants at Lavera in April 2024 after buying the 50% equal stake of its partner TotalEnergies in the Naphtachimie, Appryl, Gexaro, and 3TC businesses at the site. The businesses had been operated as joint ventures by Ineos and TotalEnergies.

“While mechanical recycling remains essential, advanced recycling plays a critical role in expanding the potential for plastics recycling and closing the loop – particularly for high-performance applications,” said Rob Ingram, CEO of Ineos O&P Europe. “By converting our cracker in Lavera and securing access to pyrolysis oil, we are building the capability needed to produce virgin-quality polymers from recycled feedstocks.”

Ineos’ O&P Europe business has a nameplate production capacity for over 8.5 million metric tons per year of chemicals and polymers, produced at eight separate sites.

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