The new vessels will increase the company’s fleet of LNG carriers from 14 to at least 22 vessels
Abu Dhabi’s ADNOC Logistics & Services (ADNOC L&S) has awarded $2.5bn (Dhs9.2bn) worth of shipbuilding contracts to build new liquefied natural gas (LNG) tankers as part of the company’s growth and fleet expansion strategy.
Under the deal, the energy logistics firm awarded South Korea’s Samsung Heavy Industries and Hanwha Ocean the contract to build four LNG vessels with the option for an additional one. The LNG vessels will be delivered beginning in 2028 and will be time chartered to ADNOC Group subsidiaries for 20 years.
The fleet expansion is expected to support the growing export volumes of natural gas, which is an in-demand critical lower-carbon transitional fuel.
The new vessels will increase ADNOC L&S’s fleet of LNG carriers from 14 to at least 22 vessels.
“The shipbuilding contracts with Samsung Heavy Industries and Hanwha Ocean are major steps forward in our transformational growth strategy. We have now committed to over 50 per cent of our medium-term strategic investment target one year post our initial public offering (IPO) in 2023,” Abdulkareem Al Masabi, the company’s CEO, said in a statement.
The LNG carriers will each have a capacity of 174,000 cubic meters and feature MEGA and XDF2.2 engines, which will deliver fuel efficiency and the lowest emissions in the company’s global fleet.
ADNOC L&S revised its growth guidance upwards in Q1 2024 as it looks to invest more than $5bn in energy-related maritime logistics over the medium term to meet growing demand in the UAE and beyond.
Meanwhile, the Abu Dhabi-based firm continues to advance its growth strategy by expanding its fleet size, customer base, and geographical footprint. It agreed to acquire maritime logistics firm Navig8 TopCo Holdings for $1.49bn in June to grow its global presence.
ADNOC L&S delivers crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers. It was created in 2016 following a merger between Abu Dhabi National Tanker Company, Petroleum Services Company and Abu Dhabi Petroleum Ports Operating Company.
The company’s net profit in the January-March period jumped 34 per cent year-on-year to reach $194m, while its revenue increased by 42 per cent to $840m. ADNOC L&S’s $769m IPO in 2023 was oversubscribed 163 times.
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