Growing LNG demand spurs ship orders
02 June 2022
Each vessel can carry 175 000 m3 of LNG
ADNOC Logistics & Services, the shipping and maritime logistics arm of the Abu Dhabi National Oil Co. (ADNOC) plans to purchase three additional liqueified natural gas (LNG) vessels.
ADNOC L&S is the region’s largest shipping and integrated logistics company 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.
The new-build LNG vessels, each with a capacity of 175 000 m3, are significantly larger than the current ADNOC L&S fleet which have a capacity of 137 000 m3 each. ADNOC L&S previously announced in April 2022 that it will acquire two 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,” said Captain Abdulkareem Al Masabi, CEO of ADNOC L&S. ADNOC L&S’ strategic acquistion of five state-of-the-art LNG vessels will support ADNOC’s existing LNG business as well as its significant growth plans.
“Several dynamics are strengthening the LNG market, which makes the timing of these acquisitions particularly significant. This includes a renewed emphasis on energy access and security, as well as new environmental regulations that favor more fuel-efficient vessels, such as the new-builds that we are purchasing.”
All five new-build LNG vessels will be built 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.
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 new vessels’ engine technology will reduce emissions (CO2, NOX and SOX) and in combination with the innovative Air Lubrication System, further reduce fuel consumption by at least 10%.
Over the past 24 months, ADNOC L&S has acquired 16 deep sea vessels, including eight Very Large Crude Carriers (VLCC) in 2021, that added 16 million barrels of capacity. Furthermore, the company acquired six product tankers, which expanded the product tanker fleet capacity to over 1 million metric tonnes as well as five VLGC for AW Shipping.