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Adnoc L&S signs contracts worth $4.4 bilion to build 23 supertankers

Adnoc L&S has the largest diversified fleet in the region, with over 800 owned, operated and chartered vessels

Published: Thu 7 Nov 2024, 9:56 PM

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Adnoc Logistics & Services (Adnoc L&S), through its joint venture AW Shipping, awarded contracts worth $1.9 billion to build nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs) with Jiangnan Shipyard in China.

The company has also signed contracts worth $2.5 billion with Korea’s Samsung Heavy Industries and Hanwha Ocean to build up to 10 LNG carriers, further enhancing its ability to meet global demand for low-carbon energy.

Captain Abdulkareem Al Masabi, CEO of Adnoc Logistics & Services (Adnoc L&S), said the company continues to grow its owned and chartered fleet of integrated logistics and shipping services to meet growing global demand, signing contracts worth $4.4 billion with a number of international companies.

“We also expanded the size of our fleet through shipbuilding contracts that include 10 new LNG carriers, 9 Very Large Ethane Carriers, and 4 Very Large Ammonia carriers, which represents a strategic step in reducing emissions globally and meeting the growing demand for energy,” he said.

“The investment aims to support the energy transition and open new markets for the company, while advancing its efforts to reduce carbon emissions in industrial operations,” he noted.

The company has adopted an integrated strategy to bring in global expertise, which enhances the skills of a workforce of more than 10,000 individuals and more than 3,200 seafarers. “The company is committed to supporting the local economy through the In-Country Value Enhancement Programme, with its contribution rate reaching 86% in 2023,” he stated.

He explained that the company continues to adopt sustainable environmental practices, including protecting the marine environment in which it operates and preserving the UAE’s maritime heritage. “The company’s sustainability efforts are in line with Adnoc Group’s Net Zero by 2045 target, the UAE’s Net Zero by 2050 strategy, and the International Maritime Organization’s 2050 net zero target,” he added.

Adnoc L&S has the largest diversified fleet in the region, with over 800 owned, operated and chartered vessels, supported by Integrated Logistics facilities that provide comprehensive and Integrated Logistics, Shipping and Marine Services. “This enables the company to support across the energy supply chain for Adnoc Group and other global partners,” he added.

The company aims to sustain its growth by enhancing its partnership with Adnoc Group and broadening its services to attract new customers in global markets. “The company continues to embrace artificial intelligence (AI) technologies to enhance operational efficiencies and reduce emissions, in addition to establishing a 100% HSE culture, which creates new value for customers and shareholders,” he said.

The company is implementing a growth strategy focused on key pillars: expanding service offerings, diversifying into new sectors, entering global markets, and increasing fleet size. “This aims to ensure the responsible provision of energy needed for societal and economic growth while strengthening Adnoc’s status as a leading integrated global energy company.”

He further stated, “As part of our business growth, we have entered new sectors such as Engineering, Procurement and Construction (EPC) with a contract worth $975 million to build an artificial island.”

“We are strengthening our global expansion by entering new global markets and announced our acquisition of “Navgi8”, which is currently subject to regulatory approvals,” he further stated.

“Upon completion of the acquisition, it will contribute to consolidating our position as a leading global energy maritime logistics company with a strong presence in 15 cities across five continents and a fleet of 32 tankers.”

Al Masabi explained that Adnoc L&S is comprehensively adopting AI technologies to enhance its operational efficiency and reduce emissions, while establishing a comprehensive HSE 100% culture.

According to him, the company is leveraging advanced AI solutions alongside its fleet expansion strategy to enhance performance and sustainability. “This approach has resulted in a 60% reduction in delivery times for important equipment and a 30% decrease in carbon emissions within its logistics sector,” he concluded.



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