ADNOC Logistics & Services (ADNOC L&S) has awarded construction contracts for at least eight LNG carriers to Samsung Heavy Industries and Hanwha Ocean.
The shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC) said that each of Samsung Heavy Industries and Hanwha Ocean were awarded shipbuilding contracts for the construction of four firm vessels with the option for an additional one. The deals are worth $2.5bn in total.
The vessels are expected to be delivered at the beginning of 2028 and will be time chartered to ADNOC subsidiaries for 20 years to support the growing export volumes of natural gas. These vessels will increase the company’s fleet of LNG carriers from 14 to at least 22 vessels.
The LNG carriers will each have a capacity of 174,000 cu m and feature MEGA and XDF2.2 engines as well as a cargo conditioning system designed to reduce LNG cargo evaporation while in transit. Systems will also be in place for direct cargo boil-off of gasses to the engines which will increase fuel efficiency and decrease fuel consumption.
ADNOC L&S already has six 175,000 cu m units under construction at China’s Jiangnan Shipyard due for delivery across 2025 and 2026.
These contracts were awarded following letters of intent awarded to the two companies earlier this year. At the time, the agreement was to build three ships each, valued in total at about $1.5bn with options for four additional newbuilds.
The company added that it has now committed to over 50% of its medium-term strategic investment target one year post its IPO in 2023. Following its strong first quarter of the year, ADNOC L&S has revised its growth guidance upwards and now intends to invest over $5bn in energy-related maritime logistics over the medium term.
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