ADNOC Logistics and Services plc, announced that it has awarded South Korean shipyards Samsung Heavy Industries and Hanwha Ocean up to $2.5 billion shipbuilding contracts for the construction of new Liquified Natural Gas (LNG) Carriers.
The contracts with Samsung Heavy Industries and Hanwha Ocean represent a significant step in ADNOC L&S’s growth strategy, reflecting a commitment to strategic investments. This initiative comes one year after the company’s IPO in 2023, during which it outlined a medium-term investment target of $4-5 billion (AED14.7-18.4 billion).
The shipbuilding contracts with Samsung Heavy Industries and Hanwha Ocean are major steps forward in our transformational growth strategy, demonstrating ADNOC L&S’ steadfast commitment to value-accretive strategic investments. We have now committed to over 50% of our medium-term strategic investment target one year post our record-breaking IPO in 2023.
..Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said.
Following a strong Q1 financial performance and continued growth, ADNOC L&S has revised its investment guidance, now planning to invest over $5 billion (AED18.4 billion) in energy-related maritime logistics. This growth plan includes the recent $1.4 billion (AED5 billion) acquisition of Navig8 TopCo Holdings Inc.
Since its IPO, ADNOC L&S has allocated $3.9 billion (AED14.3 billion) to organic growth, mainly through long-term contracts. The company’s expansion strategy focuses on increasing its fleet size, customer base, and geographical reach.
The new LNG Carriers will each have a capacity of 174,000 cubic meters and feature MEGA and XDF2.2 engines for optimal fuel economy and low emissions. They will include advanced sustainability technologies such as a cargo conditioning system to reduce LNG evaporation, systems to direct cargo boil-off gases to the engines, a real-time emissions monitoring system, and innovative cargo containment systems to minimize methane emissions. These features aim to make the carriers among the most fuel-efficient in the world, supporting ADNOC L&S’s goal of maritime decarbonization and ADNOC Group’s 2045 Net Zero target.
