ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of ADNOC, has announced the signing of a ship building contract for the construction of two LNG vessels.
The new build vessels will each have a capacity of 175,000 cubic meters and will join the ADNOC L&S fleet in 2025, according to the company, which did not disclose the value of the deal. They will be built in Jiangnan Shipyard in China.
ADNOC L&S highlighted that the new vessels will be “significantly larger” than its current fleet of LNG vessels, which are said to have a capacity of 137,000 cubic meters each. The company noted that the acquisition of larger, more energy efficient vessels will allow the business to meet growing customer demand while improving the environmental footprint of its fleet.
The purchase of the new vessels is part of ADNOC L&S’s broader growth and expansion strategy, the company outlined, adding that the new LNG vessels will be crucial enablers of ADNOC’s 2030 growth strategy.
“The expansion and modernization of our LNG fleet will be a key enabler of ADNOC L&S’s growth strategy,” Captain Abdulkareem Al Masabi, the CEO of ADNOC L&S, said in a company statement.
“This acquisition helps future-proof our fleet with more sustainable, modern vessels capable of serving our customers for the next 25 years and deepens our partnership with Jiangnan Shipyard,” he added in the statement.
Commenting on the deal, Lin Ou, the chairman of Jiangnan Shipyard, said, “we are extremely proud to continue our relationship with ADNOC L&S”.
“This order for large LNG carriers is another milestone in the strategic portfolio of Jiangnan shipyard. We are committed to delivering these vessels on time, with good quality and ensuring the highest possible customer satisfaction,” Ou added in the statement.
ADNOC L&S highlighted that, back in 2020, the company started a strategic growth program to expand and diversify its shipping fleet and offer a broader service to its customers. During that year, Jiangnan Shipyard was commissioned by ADNOC L&S to build five very large gas carriers for AW Shipping, ADNOC L&S’s joint venture company with China’s Wanhua Chemical Group.
Over the past 24 months, ADNOC L&S has acquired 16 deep sea vessels, including eight very large crude carriers, six product tankers, and five very large gas carriers, the company outlined.
ADNOC L&S’s latest deal is one of several signed in recent months. Back in February 2022, the company revealed that it and Atlantic Gulf & Pacific International Holdings had signed a charter agreement to utilize ADNOC L&S’s LNG Carrier Ish as a floating storage facility. Under the terms of the deal, starting in the third quarter of this year, AG&P will use the carrier for the first LNG Import Terminal in the Philippines at Ilijan in Batangas Bay (PHLNG). The value of this deal was also not disclosed by ADNOC L&S.
In November 2021, ADNOC L&S announced that it and AD Ports Group had signed an agreement to develop a new port and logistics facility at TA’ZIZ, the chemicals production and industrial hub at Ruwais in the UAE. As part of this deal, ADNOC L&S and AD Ports Group will develop a liquids terminal and logistics facility to support tenants of the TA’ZIZ Industrial Chemicals Zone.
ADNOC L&S is 100 percent owned by ADNOC. The company is the largest fully integrated shipping and logistics company in the UAE, according to its website, which notes that the business supports the entire oil and gas supply chain through three major business segments – shipping, integrated logistics and marine services. ADNOC L&S provides maritime and logistics solutions to ADNOC Group companies and to over 100 global customers, its site notes.
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