TLDR:
ADNOC L&S invests in supertanker fleet.
Partnership expands low-carbon energy transport.
Fleet growth strengthens global logistics role.
ABU DHABI (The Thursday Times) — ADNOC Logistics & Services (ADNOC L&S) has signed contracts valued at $4.4 billion with global shipbuilders to construct 23 new supertankers. The contracts, aimed at expanding ADNOC L&S’s low-carbon shipping capacity, were announced during ADIPEC 2024, underscoring the company’s efforts to meet growing global demand and support the energy transition.
The contracts represent a pivotal move for ADNOC L&S as it enhances its fleet to include 10 new LNG carriers, nine Very Large Ethane Carriers, and four Very Large Ammonia Carriers. This strategic investment aligns with ADNOC Group’s commitment to achieving Net Zero by 2045, while also contributing to the UAE’s Net Zero by 2050 ambitions and the International Maritime Organization’s 2050 target. Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, highlighted the role of the expanded fleet in reducing emissions and bolstering energy supply chain efficiency.
Collaboration with global shipbuilders
To meet the demands of a growing global energy market, ADNOC L&S has partnered with Jiangnan Shipyard in China and South Korea’s Samsung Heavy Industries and Hanwha Ocean. The $1.9 billion contract with Jiangnan will fund the construction of nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs), reinforcing ADNOC L&S’s strategic focus on sustainable maritime logistics.
In a separate contract worth $2.5 billion, Samsung Heavy Industries and Hanwha Ocean will build up to 10 LNG carriers. These LNG carriers will enhance ADNOC’s ability to meet increasing demand for low-carbon energy solutions, positioning the company as a leader in the global energy logistics sector.
ADNOC L&S is committed to bolstering the local economy through its In-Country Value Enhancement Programme, which achieved an 86% contribution rate in 2023. This programme supports workforce development, benefiting over 10,000 employees and more than 3,200 seafarers. The company’s sustainability agenda extends to preserving marine environments and integrating practices that align with ADNOC Group’s environmental objectives.
Al Masabi stressed ADNOC L&S’s dedication to sustainable operations, with initiatives targeting carbon emission reductions and operational efficiency. The fleet expansion aligns with ADNOC’s strategy to address the environmental impact of maritime activities and strengthen ADNOC L&S’s role as a responsible global player.
Advanced technologies and strategic growth
The company has embraced advanced technologies, including artificial intelligence, to improve operational efficiencies and minimise environmental impact. This shift towards AI has resulted in a 60% reduction in equipment delivery times and a 30% decrease in carbon emissions. ADNOC L&S’s commitment to sustainability includes a 100% Health, Safety, and Environment (HSE) culture, creating added value for clients and stakeholders.
As part of its growth strategy, ADNOC L&S recently entered the Engineering, Procurement, and Construction (EPC) sector, securing a $975 million contract to build an artificial island. Additionally, ADNOC L&S’s acquisition of Navgi8, subject to regulatory approvals, will solidify its position in global energy logistics with operations in 15 cities across five continents. The expansion into new markets, supported by a diversified fleet of over 800 vessels, highlights ADNOC L&S’s role in the global energy supply chain.
