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UAE’s ADNOC Logistics & Services (ADNOC L&S) has signed contracts worth $4.4bn to build 23 supertankers for ethane, ammonia and liquefied natural gas, as the company continues to expand its owned and chartered fleet to meet growing global demand.
“We expanded the size of our fleet through shipbuilding contracts that include ten new LNG carriers, nine very large ethane carriers (VLECs), and four very large ammonia carriers (VLACs), which represents a strategic step in reducing emissions globally and meeting the growing demand for energy,” Abdulkareem Al Masabi, CEO of ADNOC L&S said in an interview with Emirates News Agency on the sidelines of ADIPEC in Abu Dhabi.
The firm, through its joint venture AW Shipping, awarded contracts worth $1.9bn to build nine VLECs and four VLACs with Jiangnan Shipyard in China. It also signed contracts worth $2.5bn with Korea’s Samsung Heavy Industries and Hanwha Ocean to build up to 10 LNG carriers.
ADNOC L&S has one of the largest diversified fleets in the Middle East region, with more than 800 owned, operated and chartered vessels. “This enables the company to support across the energy supply chain for ADNOC Group and other global partners,” said Al Masabi.
He stressed that the firm aims to sustain its growth by enhancing its partnership with its parent company while broadening its services to attract new customers in global markets.
ADNOC L&S is implementing a transformational growth strategy focused on key pillars: expanding service offerings, diversifying into new sectors, entering global markets, and increasing fleet size. It has forayed into new sectors such as engineering, procurement, and construction (EPC), with a $975m contract to build an artificial island.
The company’s acquisition of Navgi8”, which is subject to regulatory approvals, is expected to consolidate its position as a leading global energy maritime logistics firm with a presence across five continents and a fleet of 32 tankers.
Al Masabi said ADNOC L&S is leveraging AI solutions alongside its fleet expansion strategy to enhance performance and sustainability. “This approach has resulted in a 60 per cent reduction in delivery times for important equipment and a 30 per cent decrease in carbon emissions within its logistics sector,” he said.
Read: Abu Dhabi’s ADNOC L&S agrees to acquire maritime firm Navig8