ADNOC L&S Expands Fleet with $324 Million VLGC Investment
ADNOC Logistics & Services (ADNOC L&S) has announced a significant investment of AED1.19 billion ($324 million) to expand its fleet with three very large gas carrier (VLGC) newbuildings. Each vessel will have a capacity of 90,000 cubic metres, adding a total of 270,000 cubic metres of gas carrying capacity to the company's operations. The ships are scheduled for delivery in the second half of 2029 and have already been secured on seven-year contracts with ADNOC Global Trading.
The investment amounts to approximately $108 million per ship, and the shipyard involved has not been disclosed. This order follows a previous transaction in which ADNOC L&S spent AED4.8 billion ($1.3 billion) to acquire six very large crude carriers and five very large gas carriers, increasing its VLGC fleet to 12 ships. With the addition of the latest trio, the total will rise to 15 ships upon delivery, assuming no disposals occur in the interim.
ADNOC L&S has also been expanding its LNG tonnage. In July, the company ordered four 175,000 cubic metre LNG carriers at Jiangnan Shipyard for around $900 million, and in August, it exercised options for two more ships for $444 million, bringing that newbuilding programme to a total of 20 ships. Unlike the LNG programme, the new VLGCs come with firm employment already attached, though no value has been disclosed for the seven-year ADNOC Global Trading contracts or for the financing of the vessels.