Record-breaking oil production and nearly empty storage tanks—has the UAE achieved a 'miraculous recovery'?

The UAE’s crude oil supply has rebounded rapidly to a historic high, yet recovery in natural gas output, petrochemical production, and fuel inventories remains markedly sluggish; the energy system continues to face dual pressures from supply-chain disruptions and insufficient reserves. According to data from the International Energy Agency (IEA), the UAE’s oil supply reached a record peak of 5.3 million barrels per day (bpd) in September, with Fujairah Port’s daily loading volume rising to 2.62 million barrels. The Ruwais Refinery also resumed full-capacity operations by late August. However, energy analyst Karl Miller noted in his assessment report released on October 22 that natural gas output, feedstock supply for petrochemicals, and fuel inventories remain far below pre-conflict levels—crude oil export recovery has not translated into comprehensive restoration of the energy system. On one hand, gradual repair of damaged infrastructure—combined with the UAE’s May exit from OPEC and consequent freedom from prior production quotas—has driven the rebound in crude supply. On the other hand, the natural gas and petrochemical value chains remain constrained by feedstock shortages, while fuel inventories at Fujairah Port have sharply declined. Restored crude export capacity does not equate to restored resilience against supply interruptions across the broader energy system. Recovery from the bottom—but war-related damage persists Earlier this year, the UAE’s energy system suffered a series of attacks affecting crude production, natural gas processing, refining, petrochemicals, and supporting power infrastructure. Per U.S. Energy Information Administration (EIA) data, UAE crude and condensate output fell from roughly 4 million bpd at the start of the year to an average of 2.4 million bpd during March–May—a 40% decline. Damaged facilities spanned multiple critical nodes: the Ruwais refining complex caught fire and halted operations on March 10; the Shah sour gas processing plant and Habshan natural gas complex were both attacked; and Borouge’s petrochemical plant, Emirates Global Aluminium’s smelter, and supporting power infrastructure for the Barakah nuclear power plant were also affected. Fujairah Port—which serves as a key alternative route bypassing the Strait of Hormuz—was similarly impacted. According to Reuters, the port sustained at least 19 attacks since the conflict began. In the week of March 16, its loading volume plunged to 440,000 bpd; after another strike on May 4, refined product exports virtually ceased, with only a single refined-product tanker departing over the following month. As some facilities were repaired and crude export operations resumed, UAE supply metrics rebounded swiftly. Yet rising crude output does not signify full recovery across the energy value chain—natural gas processing, petrochemical production, and refined product exports remain hampered by damaged infrastructure and supply-chain bottlenecks. Natural gas and petrochemical sectors still constrained by feedstock shortages ADNOC Gas—the natural gas subsidiary of Abu Dhabi National Oil Company—reported in its Q2 financial results that domestic natural gas production fell 32.5% year-on-year; exports of liquefied petroleum gas (LPG) and naphtha dropped 54.5%; equity LNG production declined 63%; and LNG sales volumes fell approximately 71%. In the same period, the company’s revenue declined 39%, EBITDA dropped 47%, and net profit fell 52%, representing a quarterly revenue reduction of roughly $2.3 billion. Notably, the company’s asset availability rate stood at 99.9% in Q2, yet actual asset utilization fell from 80% to 54%. This indicates that equipment is technically operational—but insufficient feedstock prevents full-capacity production.

Jiade Li’s IPO entangled in a ‘dual dependency’ dilemma: the actual controller provides unpaid services to related parties.

According to the reply to the second round of inquiries, the transition period could last up to two years. Taking ultra-thin films for new-energy vehicles as an example, based on historical experience—including product development timelines and past customer testing feedback cycles—the company estimates that after switching raw materials, the product development cycle takes about two months, and the customer validation cycle about four months. Thus, each round—from development to validation—requires six months. Assuming three rounds of development and validation (small-scale samples, small-batch trials, and large-batch trials), the total time required would be 18 months. Accounting for additional time needed for customers to schedule validation work, final product standardization and stable mass production supply may take up to two years. During the reporting period, Jiade Li’s main business revenues were RMB 550 million, RMB 528 million, RMB 728 million, and RMB 367 million, respectively. Of these, revenues from ultra-thin BOPP electrical insulation films amounted to RMB 238 million, RMB 218 million, RMB 326 million, and RMB 183 million, accounting for 43.25%, 41.37%, 44.78%, and 49.67% of total main business revenue in each respective period—reaching nearly 50% in the most recent period. All 11 production lines rely on the same supplier—and construction projects may involve ‘commencement before approval’ Beyond heavy reliance on Borealis (a subsidiary of North European Chemicals) for raw materials, Jiade Li also depends heavily on foreign equipment suppliers for production machinery. The prospectus states that Jiade Li operates 11 BOPP electrical insulation film production lines: eight are already operational, and three are under construction—all supplied by German manufacturer Brückner. The reply to the first round of inquiries cites statistics from ChemMedia Consulting, indicating that imported equipment accounts for 85% of China’s BOPP electrical insulation film equipment market—with Brückner alone holding a 56% market share. Equipment from German firm Lindauer Dornier and French firm Matis also holds notable shares. The inquiry reply notes that few domestic manufacturers produce BOPP electrical insulation film lines—such as Beijing Xinghe Zhongchuang Technology Co., Ltd. and Beijing Machinery Industry Automation Research Institute Co., Ltd.—and those primarily serve medium-to-thick film production. For ultra-thin films, alternative suppliers include Lindauer Dornier and Matis. Should Jiade Li become unable to procure lines from Brückner, it could turn to these alternative manufacturers—but the transition period would be lengthy. High-end equipment supplied by line manufacturers is largely custom-built and delivered. Technical solution confirmation prior to contract signing typically takes around 10 months, and engineering development through delivery generally requires about 36 months. Jiade Li asserts that it has acquired the capability to retrofit production lines and equipment; thus, procuring new lines from alternative suppliers presents no major technical difficulty beyond the extended delivery timeline. Notably, the “No. 7 and No. 8 Production Line Projects” constitute one of the construction-in-progress items disclosed in Jiade Li’s prospectus, with balances of RMB 13,400, RMB 25.59 million, and RMB 137 million as of the end of 2023, the end of 2024, and June 2025, respectively. However, according to the official website of the Quanzhou Taiwan Investment Zone Management Committee, it was not until January 23, 2025, that the local Administrative Approval Bureau issued the environmental impact assessment (EIA) approval for Jiade Li’s newly constructed ultra-thin BOPP new-material production lines No. 7 and No. 8 (Document No. Quan Tai Guan Huan Shen [2025] Table 9).

Borouge PLC to Continue Using Alternatives to Ruwais Port for Exports in Near Term

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Borouge PLC plans to maintain alternative export routes to Ruwais port in the near term, coinciding with a 32% Q3 output increase. Plant utilization climbed to 90% in October as key petrochemical products remain in high demand.

chemweek

2026-10-30

Borouge PLC to Continue Using Alternatives to Ruwais Port for Exports in Near Term

Borouge PLC to Continue Using Alternatives to Ruwais Port for Exports in Near Term

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