ADNOC L&S SIGNS $4.4 BILLION DEAL TO BUILD 23 SUPERTANKERS FOR AMMONIA, ETHANE, & LNG
ADNOC Logistics & Services (L&S) has signed contracts worth $4.4 billion to build 23 new supertankers capable of transporting low-carbon fuels like ethane, ammonia, and liquefied natural gas (LNG).
According to the UAE’s state news agency, the deal will strengthen the country’s energy logistics capabilities and boost global energy transition efforts.
ADNOC L&S’s joint venture, AW Shipping, has signed a $1.9 billion deal to build nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs) with China’s Jiangnan Shipyard.
The company also invested $2.5 billion to build up to 10 LNG carriers with South Korean shipbuilders Samsung Heavy Industries and Hanwha Ocean.
ADNOC L&S CEO Capt. Abdulkareem Al Masabi said these contracts expand ADNOC’s owned and chartered fleet. He added that the fleet upgrade supports ADNOC L&S’s long-term strategy, which focuses on expanding services, entering new markets, and adopting new sectors.
Al Masabi said that the company’s investments are meant to reduce global emissions and meet expanding energy demands.
He reiterated that ADNOC L&S is committed to sustainable operations and preserving marine environments, complying with the ADNOC Group’s Net Zero by 2045 goal and the UAE’s Net Zero by 2050 strategy.
ADNOC L&S’s diverse fleet, which now consists of approximately 800 owned, operated, and chartered vessels, enables the company to provide end-to-end logistical support to the ADNOC Group’s energy supply chain and its global partners.
The company is expanding its use of artificial intelligence (AI) to improve operational efficiency and lower carbon emissions. Al Masabi claims that using AI has already reduced delivery times by 60% and carbon emissions in logistics by 30%.
Apart from the fleet expansion, ADNOC L&S recently joined the Engineering, Procurement, and Construction (EPC) sector by obtaining a $975 million contract to build an artificial island.
The company is also expanding its worldwide reach with the acquisition of Navgi8, intended to improve ADNOC L&S’s position as a global leader in marine logistics pending regulatory approval.
The acquisition will expand its presence to 15 different places across five continents and add 32 tankers to its fleet.
Reference: Reuters, Khaleej Times
