Abu Dhabi – Mubasher: ADNOC Logistics & Services (ADNOC L&S) has awarded South Korean shipyards Samsung Heavy Industries and Hanwha Ocean up to $2.50 billion (AED 9.20 billion) shipbuilding contracts.

The deals cover the construction of new liquified natural gas (LNG) carriers as part of the UAE-based group’s transformational growth strategy and fleet expansion plans, according to a press release.

Each of Samsung Heavy Industries and Hanwha Ocean will handle the construction of four firm vessels with the option for an additional one.

The vessels are expected to be delivered at the beginning of 2028 and will be time chartered to ADNOC Group subsidiaries for 20 years to support the growing export volumes of natural gas.

Meanwhile, the new vessels will increase the company’s fleet of LNG carriers from 14 to at least 22 vessels.

Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “We have now committed to over 50% of our medium-term strategic investment target one year post our record-breaking IPO in 2023.”

Following its strong financial performance in the first quarter (Q1) of 2024, the company revised its growth guidance to invest over $5 billion (AED 18.4 billion) in energy-related maritime logistics over the medium term to meet growing demand in and beyond the UAE.

The ADX-listed recently concluded a $1.40 billion (AED 5 billion) acquisition of Navig8 to anchor its value-accretive growth opportunities.

 “These LNG Carriers will employ cutting-edge technology to increase fuel efficiencies and carbon intensity reductions in line with the company’s sustainability goals and will open up new opportunities for customer and geographical expansion while unlocking increased value for our shareholders,” Al Masabi.

The LNG carriers will each have a capacity of 174,000 cubic metres and feature MEGA and XDF2.2 engines, producing the best fuel economy and lowest emissions in the company’s global fleet.

These features will reinforce ADNOC L&S’ position as a leader in maritime decarbonisation and ADNOC Group’s 2045 Net Zero target.