AD Ports signs five-year deal to operate Adnoc unit's storage hub in Kizad

AD Ports is launching a number of projects to boost trade at Kizad. Photo: AD Ports

AD Ports Group, the operator of ports, industrial cities and free zones in Abu Dhabi, signed a five-year deal with Adnoc Logistics and Services to operate a new facility in Kizad, as the UAE looks to boost its industrial infrastructure.

The facility will be used to store polyolefin products manufactured by petrochemical provider Borouge, AD Ports said in a statement on Tuesday to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.

The agreement follows the sale of the facility by AD Ports Group to Adnoc L&S this year.

“As one of the largest facilities of its kind in the world, it was developed in 2021 as a 180,000 square metres advanced polymers storage hub,” the statement said.

“It will allow Borouge to serve its global polymers export markets thanks to its strategic location in Kizad and its proximity to Khalifa Port.”

Borouge, a joint venture between state energy producer Adnoc and Austrian chemicals producer Borealis, is rapidly expanding operations and in February, started operations at its fifth polypropylene unit in Ruwais.

The unit will help the UAE to meet growing demand for products in the recyclable advanced packaging, infrastructure and industrial sectors.

Abu Dhabi plans to triple its petrochemical production capacity from 4.5 million tonnes — currently produced entirely by Borouge in Ruwais — by 2025.

In November, Adnoc L&S and AD Ports Group also signed an agreement to develop a port and associated facilities at the Taziz chemical manufacturing hub within Ruwais.

Taziz is being prioritised for the development and manufacture of chemicals and other speciality products.

AD Ports, which made its debut on the ADX in February, is launching a number of projects to increase trade at Kizad.

Last week, it announced plans to develop a regional auto centre there in partnership with the Ghassan Aboud Group to increase trades with the automotive industry.

This year it revealed plans to develop one of the region’s largest food trading and logistics centres at the free zone. It was launched in partnership Ghassan Aboud Group and France’s Rungis International Market.

AD Ports is also teaming up with Abu Dhabi’s Metal Park Investment to establish an integrated metal hub at Kizad.

The 450,000-square-metre facility will cater to all industry verticals and offer flexibility of scale to metal vendors, processors and fabricators in the Emirates.

Adnoc L&S will be the primary owner of the storage hub at Kizad, while AD Ports Group will “run its operations serving the needs of Borouge as the end-user”, the statement on Tuesday said.