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ADNOC Logistics and Services, the shipping arm of Abu Dhabi’s national oil company, has announced a $1.3bn investment in 11 vessels to expand its fleet.
The company has purchased three VLGCs and six VLCCs scheduled for delivery in the third quarter this year, as well as two VLGCs for delivery in the fourth quarter.
The nine vessels due for delivery in the third quarter were acquired second-hand and will enter service immediately upon delivery, while the two VLGCs due later in the year are resale newbuilds from a Chinese shipyard.
These acquisitions bring ADNOC L&S VLCC fleet to 14 vessels and its VLGC fleet to 12 as the Abu Dhabi major looks to take a firmer hold of ADNOC’s energy transportation requirements.
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ADNOC has expanded its LNG carrier fleet in recent months and has a significant orderbook in place, including orders at China’s Jiangnan Shipyard for four 175,000 cu m carriers for delivery in 2029.
They also have orders for six LNG carriers, nine VLECs, four VLACs, as well as an earlier order of five VLGCs.
These vessels, along with the eight LNG carriers under construction at Samsung Heavy Industries and Hanwha Ocean in South Korea, will support ADNOC’s growing exports and serve customers in key markets.
Despite the ongoing conflict in the Middle East and restrictions to energy flows through the Strait of Hormuz, the ADNOC Group recently announced a $6.2bn Final Investment Decision on the Umm Shaif Gas Cap.
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This development will generate some 600m standard cubic feet per day of natural gas and gas liquids.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said of the latest ship acquisitions: “This $1.3bn investment reflects the disciplined execution of our growth strategy and our commitment to building world-class maritime logistics capabilities for the energy sector.
By adding 11 vessels, we are expanding our capacity to support ADNOC’s growing exports, serve customers in key markets and capture opportunities in international energy trade. Our strong financial position and cash generation enable us to invest in growth and deliver sustainable shareholder value.”
