Abu Dhabi National Oil Company's logistics and services subsidiary Adnoc L&S has bought three new liquefied natural gas (LNG) vessels as the company expands its fleet to meet higher demand for LNG globally.
Each of the new-build LNG vessels has a capacity of 175,000 cubic metres and are larger than the company's current fleet that come with an individual capacity of 137,000 cubic metres, Adnoc said in a statement on Thursday.
The vessels are scheduled for delivery in 2025 and 2026, boosting the number of new-build LNG vessels ordered by Adnoc to five.
The “strategic acquisition of five state-of-the-art LNG vessels will support Adnoc’s existing LNG business as well as its significant growth plans”, said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S.
“Several dynamics are strengthening the LNG market which makes the timing of these acquisitions particularly significant. 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 new-builds that we are purchasing."
Adnoc L&S has the largest and most diversified fleet in the Middle East, with more than 200 vessels transporting crude oil, refined products, dry bulk, containerised cargo, liquefied petroleum gas, and LNG to global markets.
The five new-build LNG vessels will be built at the Jiangnan Shipyard in China, which was also previously commissioned by Adnoc L&S in 2020 to build five very large gas carriers for AW Shipping, according to the statement.
"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," said Lin Ou, chairman of Jiangnan Shipyard.
Global trade in LNGrose 6 per cent to 380 million tonnes in 2021 on the back of higher demand as economies recovered from the coronavirus-induced slowdown and countries focused on cutting emissions, according to Shell's latest LNG outlook report.
China, the world's second-largest economy, and South Korea, led the growth in LNG demand last year.
Demand is expected to increase this year as European countries look for alternative LNG supplies in the wake of the ban on most of the energy imports from Russia because of Moscow's conflict with Ukraine.