ADNOC Logistics & Services, the shipping and maritime logistics arm of the Abu Dhabi National Oil Company, will add two 175,000 cbm LNG carriers to its fleet in 2025.
On 12 April, ADNOC L&S said in a statement it signed a shipbuilding contract for the construction of two new LNG vessels. According to the company, this purchase is to further reinforce its position as the UAE’s leading shipping and maritime operator. it is also a part of the company’s broader expansion strategy,
Therefore, the new LNG vessels are to be enablers of ADNOC’s 2030 growth strategy, supporting its existing LNG business as well as its ambitions to grow its LNG production capacity.
The Jiangnan Shipyard in China will build the LNG vessels.
In 2020, ADNOC L&S started a strategic growth program to expand and diversify its shipping fleet. Its trading fleet transports crude oil, refined products, dry bulk, containerized cargo, LPG, and LNG to global markets through its owned and chartered vessels.
Abdulkareem Al Masabi , CEO of ADNOC L&S, said: “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.”
Lin Ou , chairman of Jiangnan Shipyard, added: “This order for large LNG carriers is another milestone in the strategic portfolio of Jiangnan shipyard.”
The new-build LNG vessels, each with a capacity of 175,000 cbm, are significantly larger than the current ADNOC L&S fleet of LNG vessels which have a capacity of 137,000 cbm each. The acquisition of larger, more energy-efficient vessels will allow ADNOC L&S to meet growing customer demand while improving the environmental footprint. The new vessels’ engine technology will slash emissions ( CO2, NOX and SOX ) and in combination with the air lubrication system further reduce fuel consumption by at least 10 per cent. These vessels will also feature partial reliquefication systems which allow for a further reduction of emissions and conserve the cargo.
ADNOC L&S previously commissioned Jiangnan Shipyard in 2020 to build five very large gas carriers for AW Shipping. This is ANDOC L&S’ joint venture company with China’s Wanhua Chemical Group.
Over the past 24 months, ADNOC L&S acquired 16 deep sea vessels, including eight very large crude carriers in 2021. Therefore, it added 16 million barrels of capacity. In addition, it purchased six product tankers, which expanded the product tanker fleet capacity to over 1 million metric tonnes, in addition to five very large gas carriers for AW Shipping.