ADNOC acquires 3 new-build vessels to meet growing global demand for LNG

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 logistics company, said on Thursday it would purchase three additional liquefied natural gas (LNG) vessels.

The company is the region’s largest shipping and integrated logistics firm and the state-of-the-art new-build vessels will bolster the company’s capacity as it responds to the growing global demand for LNG, ADNOC L&S said in a statement.

The new-build LNG vessels, each with a capacity of 175,000m3, are significantly larger than the current ADNOC L&S fleet – which have a capacity of 137,000m3 each, the company said.

In April 2022, ADNOC L&S announced that it will acquire two more LNG vessels – which brings the total number of new-build LNG vessels ordered to five, with the vessels scheduled for delivery in 2025 and 2026.

“ADNOC is an active player in the evolving global energy landscape, where natural gas and LNG are playing an increasingly important role. ADNOC L&S’ strategic acquisition of five state-of-the-art LNG vessels will support ADNOC’s existing LNG business as well as its significant growth plans,” Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said in a statement.

According to Al Masabi, several dynamics have strengthened the LNG market and made the timing of the acquisitions particularly significant. “This includes a renewed emphasis on energy access and security, as well as new environmental regulations that favour more fuel-efficient vessels, such as the new-builds that we are purchasing,” he said.

All five new-build LNG vessels will be manufactured at the Jiangnan Shipyard in China. Jiangnan Shipyard was also previously commissioned by ADNOC L&S in 2020 to build five Very Large Gas Carriers (VLGC) for AW Shipping, ADNOC L&S’ Joint Venture company with China’s Wanhua Chemical Group.

“We would like to thank ADNOC L&S for its continued collaboration with Jiangnan. We are committed to the promotion of new efficient, energy-saving and environmentally-conscious vessels and proud to be able to support ADNOC L&S’ growth strategy for the future,” Lin Ou, Chairman of Jiangnan Shipyard, said in a statement.

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, the company said.

The new vessels’ engine technology will reduce emissions including carbon dioxide and sulphur, and in combination with the innovative Air Lubrication System, further reduce fuel consumption by at least 10%, ADNOC L&S said.