ADNOC adding LNG vessels to ‘future proof’ fleet
By Jack Burke12 April 2022
Company seeks to grow LNG business
Abu Dhabi National Oil Co. (ADNOC) is adding two liquefied natural gas (LNG) vessels as it seeks to grow its LNG production capacity.
The shipbuilding contract with Jiangnan Shipyard in China calls for two 175 000 m3 LNG vessels that will join its fleet in 2025. According to the company, the new LNG vessels will be crucial enablers of its 2030 growth strategy, supporting its existing LNG business as well as its ambitions to grow its LNG production capacity.
The new-build LNG vessels, each with a capacity of 175,000 m3, are significantly larger than current vessels in the ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics fleet of ADNOC. Current LNG vessels have a capacity of 137 000 m3 each. 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 expansion and modernization of our LNG fleet will be a key enabler of ADNOC L&S’ growth strategy,” said Capt. Abdulkareem Al Masabi, CEO of ADNOC L&S. “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.”
In 2020, ADNOC L&S started a strategic growth program 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 said it has the largest and most diversified fleet of vessels within the Middle East and its trading fleet transports crude oil, refined products, dry bulk, containerized cargo, LPG, and LNG to global markets through its owned and chartered vessels.
Jiangnan Shipyard was previously commissioned by ADNOC L&S in 2020 to build five Very Large Gas Carriers for AW Shipping, 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, 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.