ADNOC L&S Secures $4.4 Billion In Contracts To Build 23 New Supertankers

ADNOC Logistics & Services (ADNOC L&S) is expanding its fleet to meet the rising global demand for integrated logistics and shipping services. The company has signed contracts valued at $4.4 billion with international firms. Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, highlighted these developments during ADIPEC 2024.

Al Masabi stated that ADNOC L&S is a leader in maritime energy logistics, offering safe and reliable solutions to over 100 global customers. The company manages energy shipments to more than 50 countries, solidifying its role in the global energy supply chain. "The company provides safe, reliable and cost-effective maritime and logistics solutions to over 100 global customers, and manages the shipment of energy products to over 50 countries, reinforcing its position as a key partner in the global energy supply chain," he noted.

The company's joint venture, AW Shipping, has awarded $1.9 billion in contracts to Jiangnan Shipyard in China for nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs). This investment supports the energy transition and aims to reduce carbon emissions while opening new markets.

ADNOC L&S also secured $2.5 billion contracts with Samsung Heavy Industries and Hanwha Ocean from Korea for up to 10 LNG carriers. This move enhances their capacity to meet the growing demand for low-carbon energy globally.

The company is committed to sustainable practices, aligning with ADNOC Group's Net Zero by 2045 target and the UAE's Net Zero by 2050 strategy. "The company’s sustainability efforts are in line with ADNOC Group’s Net Zero by 2045 target, the UAE’s Net Zero by 2050 strategy, and the International Maritime Organization’s 2050 net zero target," he added.

ADNOC L&S is adopting AI technologies to boost operational efficiency and cut emissions. This approach has led to a significant reduction in delivery times by 60% and a decrease in carbon emissions by 30% within its logistics sector.

Strategic Growth Initiatives

The company's growth strategy includes expanding service offerings, entering new sectors like Engineering, Procurement, and Construction (EPC), and increasing fleet size. They have entered a $975 million contract for building an artificial island as part of this expansion.

ADNOC L&S is broadening its market reach by acquiring Navgi8, pending regulatory approval. This acquisition will strengthen their presence across five continents with a fleet of 32 tankers.

Local Economic Contributions

The company supports local economic growth through its In-Country Value Enhancement Programme, achieving an 86% contribution rate in 2023. It also focuses on preserving marine environments and UAE's maritime heritage.

With over 800 vessels in its diversified fleet, ADNOC L&S provides comprehensive logistics services across the energy supply chain for ADNOC Group and other partners worldwide.

Their integrated strategy involves bringing global expertise to enhance skills among more than 10,000 employees and over 3,200 seafarers. "The company continues to embrace artificial intelligence (AI) technologies to enhance operational efficiencies and reduce emissions, in addition to establishing a 100% HSE culture, which creates new value for customers and shareholders," he said.

This comprehensive approach ensures ADNOC L&S remains a key player in providing essential energy solutions while maintaining responsible environmental practices globally.

With inputs from WAM