Adnoc L&S’ LNG newbuild program hits 18 vessels with a fresh USD 900 mn order

Adnoc L&S ordered four LNG carriers worth USD 900 mn — bringing its newbuild program to 18 vessels, according to a press release. The four 175k cbm ships are being built at China’s Jiangnan Shipyard, with delivery scheduled for 2029. Combined, the vessels will add 700k cbm of carrying capacity.

Built for contracts, not the market: The ships are being added against long-term employment, rather than left to chase volatile LNG freight rates. The UAE-based company has already received six 175k cbm vessels from Jiangnan under a USD 1.2 bn order. Five of the six are deployed on contracts of up to 15 years with Adnoc Gas. Another eight vessels, worth around USD 2.5 bn of investment, are under construction at Samsung Heavy Industries and Hanwha Ocean for delivery from 2028, all locked into 20-year charters with Adnoc Gas.

The math across the three orders puts the state’s investment across the three LNG newbuild batches at around USD 4.6 bn. The structure also gives Adnoc L&S strong revenue visibility before the vessels enter service. The six delivered ships are already employed, the next eight are covered by 20-year charters, and the latest four are expected to follow the same long-term model, although the company has yet to identify a charterer or disclose charter rates.

Timed for Ruwais: The 2029 delivery date will come just as Ruwais LNG moves from start-up into ramp-up. The project’s first 4.8 mtpa train is expected to come online in 2H 2028, with the second following in early 2029. Around 90% of Ruwais’ planned output is already committed to long-term buyers across Asia and Europe.

Our take: With ships under its own control, Adnoc can offer delivered LNG, redirect cargoes, and optimize routes — control that pure freight capacity wouldn’t buy on the open market.

Jiangnan’s favorite customer: Including the latest order, the Chinese yard has received Adnoc L&S and AW Shipping, a JV between Adnoc L&S and Wanhua Chemical Group, orders for 10 LNG carriers, nine very large ethan carriers, four large ammonia carriers, and five very large gas carriers.

The timing is contrarian — LNG shipping isn't short on vessels right now. Drewry estimates more than 100 ships are slated for delivery in 2026, after 76 LNG carriers arrived in 2025, while the total orderbook stands at 334 vessels — equivalent to around 40% of the existing fleet.