ADNOC Places $900 Million Order for New LNG Carriers to Expand Global Fleet
The Abu Dhabi National Oil Company's Logistics and Services division (ADNOC L&S) has announced a new $900 million (3.3 billion AED) order for four next-generation liquefied natural gas (LNG) carriers, marking a significant expansion of its fleet to meet growing global demand for LNG.
The announcement, made on Friday, represents the next step in ADNOC L&S comprehensive LNG vessel program totaling 18 ships, aimed at building one of the most advanced and efficient LNG transportation fleets worldwide.
Details of the New Order
The four new-generation LNG carriers will be constructed at Jiangnan Shipyard in Shanghai, China, with delivery expected in 2029. These vessels will be deployed under long-term charter contracts, enhancing revenue predictability and supporting stable energy flows to global markets.
This latest LNG carrier order follows ADNOC L&S's acquisition of six 175,000 cubic meter LNG vessels from the same Jiangnan Shipyard, valued at $1.2 billion (4.4 billion AED). Among these, five vessels have been deployed under contracts up to 15 years with ADNOC Gas.
ADNOC's LNG Fleet Scale
ADNOC L&S is currently developing a large-scale LNG fleet with total investments amounting to $4.7 billion. In addition to the four newly ordered vessels, the company has eight LNG carriers valued at $2.5 billion under construction at Samsung Heavy Industries and Hanwha Ocean in South Korea. These vessels are scheduled for delivery from 2028 onward and are all chartered to ADNOC Gas under 20-year agreements.
| ADNOC L&S LNG Carrier Orders Summary | Number of Vessels | Value (USD Billions) | Shipyard Location | Expected Delivery | Charter Contract |
|---|---|---|---|---|---|
| From Jiangnan Shipyard (latest order) | 4 vessels | 0.9 | Shanghai, China | 2029 | Long-term contract |
| From Jiangnan Shipyard (received) | 6 vessels | 1.2 | Shanghai, China | Delivered | Up to 15 years |
| From Samsung Heavy Industries & Hanwha Ocean | 8 vessels | 2.5 | South Korea | 2028 onwards | 20 years |
| Total | 18 vessels | 4.6 |
ADNOC's Long-Term LNG Strategy
ADNOC has indicated that the new vessels will enhance the company's LNG delivery capabilities to customers worldwide, supporting ADNOC's broader LNG growth strategy and its newly launched global LNG marketing and trading platform. The company aims to achieve 47 million tonnes per annum (mtpa) of marketable LNG production by 2035.
In recent months, ADNOC has signed several long-term agreements for its new LNG export projects. This week, the company signed a 15-year long-term contract to supply gas from the Ruwais LNG project to Japanese company Inpex, commencing from 2028.
Global LNG Market Context
ADNOC's move comes amid a surge in global LNG demand as countries seek to transition from fossil fuels to cleaner energy sources. LNG is considered a crucial transitional energy source, offering lower emissions compared to coal and oil.
Vietnam, with its strategic geographical location and increasing energy demands, is also exploring opportunities in the global LNG market. ADNOC's expanded LNG fleet could potentially create collaboration opportunities in LNG transportation and supply for the Southeast Asian market.
Future Outlook
The expansion of ADNOC's LNG fleet not only consolidates the company's position in the energy sector but also reflects the global trend toward cleaner energy transition. With a modern and efficient LNG fleet, ADNOC is positioning itself advantageously to meet the growing international demand for LNG.
The investment in advanced LNG carrier technology also demonstrates ADNOC's commitment to reducing carbon emissions and enhancing transportation efficiency, contributing to global sustainable development goals.
By building one of the world's most advanced LNG fleets, ADNOC is not only strengthening its position in the energy industry but also contributing to the sustainable development of the global LNG industry.