Adnoc L&S has ordered three more LNG vessels, larger than its current fleet, with delivery in 2025-26.
This brings the number of newbuilds ordered by the company to five.
Adnoc L&S CEO Captain Abdulkareem Al Masabi said the acquisition of the five LNG vessels “will support ADNOC’s existing LNG business as well as its significant growth plans”.
Al Masabi went on to say the LNG market was strengthening. “This includes a renewed emphasis on energy access and security, as well as new environmental regulations that favour more fuel-efficient vessels, such as the newbuilds that we are purchasing.”
The new vessels will have capacity of 175,000 cubic metres, an increase from Adnoc L&S’ current fleet, which can carry 137,000 cubic metres each.
The company ordered the first two vessels in April this year.
China’s Jiangnan Shipyard will build all five vessels. Adnoc L&S also ordered five very large gas carriers for AW Shipping from the same yard in 2020. AW is a joint venture of Adnoc L&S and China’s Wanhua Chemical Group.
“We would like to thank Adnoc L&S for its continued collaboration with Jiangnan,” Lin Ou, chairman of Jiangnan Shipyard said.
“We are committed to the promotion of new efficient, energy-saving and environmentally-conscious vessels and proud to be able to support Adnoc L&S’ growth strategy for the future.”
The new vessels will reduce emissions and reduce fuel consumption by at least 10%.
On the up
Adnoc L&S did not reveal the value of the construction contract. Vessels of the size the company has ordered are forecast to cost more than $200 million each.
These are Jiangnan Shipyard’s first orders for LNG carriers.
Adnoc is working to expand its gas export capacity. The company awarded a front-end engineering and design (FEED) study to McDermott in mid-May for a new liquefaction facility at Fujairah.
The plant would have capacity of 9.6 million tonnes per year. McDermott said the project would involve electric drives, in order to reduce emissions.
Adnoc plans to issue engineering, procurement and construction (EPC) contracts in 2023.