Abu Dhabi petrochemicals company Borouge sold a significant proportion of its production in March through alternative shipping routes, as the effective closure of the Strait of Hormuz forced Gulf exporters to rethink logistics at speed.
The Strait of Hormuz — the narrow waterway linking the Persian Gulf to the Gulf of Oman — has been largely blocked to commercial traffic since late February 2026 following the outbreak of the Iran conflict. Under normal conditions, approximately 20 million barrels of oil and substantial volumes of liquefied natural gas pass through the corridor daily, representing roughly one-fifth of global supply.
For Borouge, a joint venture between Abu Dhabi National Oil Company (ADNOC) and Austrian chemicals firm Borealis, the disruption required rapid operational adaptation. The company rerouted a significant share of its polyolefins output through alternative channels to maintain customer supply commitments — a logistical feat that underlines both the resilience of the business and the severity of the regional challenge.
The UAE’s Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan–Fujairah pipeline, provides a key bypass route, allowing crude exports to reach the port of Fujairah on the Gulf of Oman without transiting Hormuz. However, refined products and petrochemicals from the Ruwais industrial complex — where Borouge operates — still face significant constraints, as tanker routes for finished goods remain disrupted.
The situation became more acute on 5 April when fires broke out at Borouge’s Ruwais plant following the successful interception of incoming projectiles, temporarily suspending operations. No injuries were reported and Abu Dhabi authorities responded swiftly.
The Borouge story reflects a wider pattern across Gulf industry: businesses adapting logistics in real time, leaning on pipeline infrastructure and approved shipping corridors to keep global supply chains moving during an unprecedented regional disruption.
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