Adnoc L&S earmarks USD 2.5 bn to expanding its LNG carrier fleet: Adnoc Logistics and Services (L&S) inked contacts worth USD 2.5 bn with South Korean shipyards Samsung Heavy Industries and Hanwha Ocean for eight to ten LNG carriers, according to a statement (pdf). The intake of newbuilds is set to boost the firm’s current fleet from 14 carriers to at least 22 vessels.

The details: Samsung Heavy Industries and Hanwha Ocean were each awarded contracts to build four vessels, with an option for an additional ship. Each carrier will have a 174k cubic meter capacity and operate with Mega and XDF2.2 engines, which will offer the lowest emissions in the company’s fleet.

Timeline: Delivery of the carriers will commence in 2028 and will be time chartered to Adnoc’s subsidiaries for a duration of 20 years.

Background: In late May, the firm signed letters of intent with the two shipbuilders for new vessels to serve Adnoc’s second LNG terminal at Ruwais. Ruwais aims to be the region’s first LNG export facility powered by renewable energy.

Part of the post-IPO expansion strategy: The investment is part of an expansion strategy unveiled ahead of Adnoc L&S’ landmark USD 769 mn IPO last year which will see it shell out USD 5 bn in investments in the medium term. Andoc has now plugged over half its USD 5 bn investment target into expanding its LNG fleet.

The plan is taking shape: Adnoc L&S acquired an 80% stake multinational shipping pool operator Navig8 last month in a USD 1.04 bn transaction with transfer ownership retroactively effective from 1 January 2024. The company will buy the remaining 20% in 2027 for USD 335 mn to USD 450 mn.

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