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Adnoc L&S awards vessel contracts to South Korea

By Pramod Kumar
The new LNG carriers, which are likely to be delivered beginning in 2028, will be chartered to Adnoc Group subsidiaries for 20 years Wam
The new LNG carriers, which are likely to be delivered beginning in 2028, will be chartered to Adnoc Group subsidiaries for 20 years

A subsidiary of UAE state oil major Abu Dhabi National Oil Company (Adnoc) has awarded contracts worth AED9.2 billion ($2.5 billion) to South Korean shipbuilders to construct liquified natural gas (LNG) carriers.

Two shipyards – Samsung Heavy Industries and Hanwha Ocean – have firm orders to construct four vessels with the option for one more, Adnoc Logistics & Services (Adnoc L&S) said in a statement.

The vessels, which are likely to be delivered beginning in 2028, will be chartered to Adnoc Group subsidiaries for 20 years to support growing natural gas export volumes.

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The new vessels will increase the LNG fleet from 14 to 22.

The LNG carriers will have a capacity of 174,000 cubic meters and will be equipped with the highest fuel economy and lowest emission engines.

“We have now committed to over 50 percent of our medium-term strategic investment target one year post our record-breaking IPO in 2023,” said CEO Abdulkareem Al Masabi.

Last year, Adnoc L&S announced plans to invest $4-$5 billion over the medium term. The company reported a 138 percent increase in net profit year on year in 2023, with a 41 percent annual revenue increase.

Following its robust first-quarter financial performance, it revised its medium-term growth guidance upwards to exceed $5 billion in energy-related maritime logistics.

In June, Adnoc L&S announced a $1.4 billion acquisition of Navig8 TopCo Holdings, a shipping and tanker operator.

Since its IPO, the company has committed $3.9 billion to organic growth capex, mostly against long-term contracts.

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