Abu Dhabi-based and locally stock exchange-listed energy and maritime logistic company ADNOC Logistics & Services Plc has awarded South Korean shipyards Samsung Heavy Industries and Hanwha Ocean up to $2.5bln (AED 9.2bln) shipbuilding contracts for the construction of new Liquified Natural Gas (LNG) Carriers as part of the company’s transformational growth strategy and fleet expansion plans.
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 vessels are expected to be delivered beginning 2028 and will be time chartered to ADNOC Group subsidiaries for a period of 20 years to support the growing export volumes of natural gas as an in-demand critical lower-carbon transitional fuel.
The LNG carriers will each have a capacity of 174,000 cubic meters and feature MEGA and XDF2.2 engines.
The vessels will feature cutting-edge sustainability technologies including a cargo conditioning system designed to reduce LNG cargo evaporation while in transit, systems to direct cargo boil off gasses to the engines that will increase fuel efficiency and decrease fuel consumption, a real-time emissions monitoring system, and pioneering cargo containment systems to reduce methane emissions.
The new vessels will increase the company’s fleet of LNG carriers from 14 to at least 22 vessels.
“The shipbuilding contracts with Samsung Heavy Industries and Hanwha Ocean are major steps forward in our transformational growth strategy, demonstrating ADNOC L&S’ steadfast commitment to value-accretive strategic investments. We have now committed to over 50% of our medium-term strategic investment target one year post our record-breaking IPO in 2023,” said captain Abdulkareem Al Masabi, chief executive of ADNOC L&S.
Captain Al Masabi also added: “These LNG carriers will employ cutting edge technology to increase fuel efficiencies and carbon intensity reductions in line with the company’s sustainability goals and will open up new opportunities for customer and geographical expansion while unlocking increased value for our shareholders.”
