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Adnoc L&S acquires two new-build LNG vessels

Adnoc L&S has the largest and most diversified fleet of vessels within the Middle East. — Wam
Adnoc L&S has the largest and most diversified fleet of vessels within the Middle East. — Wam

Region’s largest shipping and integrated logistics company continues to deliver on its growth strategy, a critical enabler of ADNOC’s broader expansion plans.



by

A Staff Reporter

Published: Tue 12 Apr 2022, 5:45 PM

Last updated: Tue 12 Apr 2022, 5:49 PM

Adnoc Logistics & Services (Adnoc L&S), the shipping and maritime logistics arm of the Abu Dhabi National Oil Company (Adnoc) and the region’s largest shipping and integrated logistics company, announced today the signing of a ship building contract for the construction of two 175,000 cubic metre LNG vessels that will join its fleet in 2025.

The purchase, part of the company’s broader growth and expansion strategy, further reinforces its position as the UAE’s leading shipping and maritime operator. The new LNG vessels will be crucial enablers of Adnoc’s 2030 growth strategy, supporting its existing LNG business as well as its ambitions to grow its liquefied natural gas (LNG) production capacity. They will be built at the Jiangnan Shipyard in China.

In 2020, Adnoc L&S started a strategic growth programme to expand and diversify its shipping fleet and offer a broader service to its customers, while supporting and enabling the growth of Adnoc’s upstream production capacity and the expansion of its downstream and petrochemical operations. Adnoc L&S has the largest and most diversified fleet of vessels within the Middle East and its trading fleet transports crude oil, refined products, dry bulk, containerised cargo, LPG, and LNG to global markets through its owned and chartered vessels.

Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said: “The expansion and modernisation of our LNG fleet will be a key enabler of Adnoc L&S’ growth strategy. 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.”

The new-build LNG vessels, each with a capacity of 175,000m3, are significantly larger than the current Adnoc L&S fleet of LNG vessels which have a capacity of 137,000m3 each. Each of the new build vessels will carry enough LNG to power 45,000 homes for a year. The acquisition of larger, more energy efficient vessels will allow Adnoc L&S to meet growing customer demand while improving the environmental footprint of its fleet.

Lin Ou, 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.

The new vessels’ engine technology will slash emissions ( CO2, NOX and SOX ) and in combination with the innovative 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.

Jiangnan Shipyard was previously commisioned by Adnoc L&S in 2020 to build five Very Large Gas Carriers for AW Shipping, Adnoc 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, adding 16 million barrels of capacity, 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.

— business@khaleejtimes.com


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