Adnoc L&S increases its shipping fleet by acquiring five Very Large Gas Carriers
Abu Dhabi National Oil Company (ADNOC) has expanded its shipping fleet by acquiring five Very Large Gas Carriers (VLGCs) from China’s Jiangnan Shipyard in Shanghai. The ships will be operated by ADNOC’s shipping arm, ADNOC Logistics & Services (ADNOC L&S), to transport liquefied petroleum gas (LPG) worldwide.
The acquisitions come as part of ADNOC’s strategy to bolster its shipping capabilities and expand into the global LPG market. The new vessels, which are expected to be delivered by 2021, will increase ADNOC L&S’ fleet size by more than 25 percent and enhance its ability to serve customers in high-growth markets across Asia, Europe and North America.
The VLGCs, each with a capacity of 85,000 cubic meters, are among the most efficient and eco-friendly in the world. They are fitted with advanced technologies, including the latest dual-fuel engines, that allow them to run on cleaner-burning liquefied natural gas (LNG) in addition to conventional marine fuels.
The purchase of the new vessels underscores ADNOC’s commitment to expanding its gas business, particularly LPG. ADNOC has set a target of increasing its LPG production capacity to 12 million metric tonnes per year by 2025, from its current capacity of 10.5 million metric tonnes per year. The company plans to achieve this through a combination of expanding existing facilities and building new ones.
According to Ahmed Al Dhaheri, CEO of ADNOC L&S, the new VLGCs will help to increase the company’s global reach and enhance its flexibility to serve customers in different regions. He said, “ADNOC L&S continues to focus on its core mission of providing world-class shipping and logistics solutions to ADNOC and its customers, while expanding its global footprint and capabilities.”
The VLGCs are also part of ADNOC’s broader strategy to leverage technology and innovation to enhance its operational efficiency, sustainability and safety. The vessels are equipped with a range of smart systems that enable remote monitoring and real-time data analytics to optimize their performance, reduce emissions and ensure safety.
ADNOC L&S is one of the largest and most diversified shipping and maritime logistics companies in the Middle East. It operates a modern and efficient fleet of more than 120 vessels, including crude oil tankers, product tankers, chemical tankers, LNG carriers and multi-purpose vessels. The fleet is capable of transporting a broad spectrum of cargo, including dry bulk, containers and break bulk. ADNOC L&S also provides comprehensive marine services to meet the needs of oil producers, traders and other customers in the maritime industry.
The company’s expansion of its shipping fleet comes at a time of growing demand for LPG, particularly in Asia. LPG is used in a range of applications, including cooking, heating, transportation and petrochemicals. It is also gaining popularity as a fuel for power generation and transportation, as it emits significantly lower levels of greenhouse gases and air pollutants than coal and diesel.
The acquisition of the new VLGCs is expected to boost ADNOC L&S’s revenues and profitability, as well as support the growth of ADNOC’s gas business. It also reflects the company’s focus on sustainability and reducing its carbon footprint.
ADNOC has set ambitious targets to reduce its greenhouse gas emissions intensity by 25% by 2030 and increase its renewable energy capacity to 9 GW by 2025. The company is investing heavily in renewable energy and clean technologies, including hydrogen and carbon capture, utilization and storage.
In conclusion, ADNOC’s acquisition of five VLGCs from China’s Jiangnan Shipyard in Shanghai is a strategic move that will help the company to expand its gas business and enhance its shipping and logistics capabilities. The vessels, which are among the most efficient and eco-friendly in the world, will enable ADNOC to transport LPG worldwide in a more sustainable and cost-effective way.
