ADNOC Logistics & Services spends $2.7 billion on vessels

ADNOC Logistics & Services, the shipping division of Abu Dhabi National Oil Co., has spent $2.7 billion on vessels this year. This expenditure includes the recent order of two new liquefied natural gas (LNG) carriers from China’s Jiangnan Shipyard for $444 million.

The new vessels are scheduled for delivery in 2029 and are part of a broader strategy to expand the United Arab Emirates’ capacity to transport energy exports. Following these deliveries, ADNOC L&S is expected to own 24 LNG carriers, with 14 currently under construction.

The investment aims to support the UAE’s plans to increase both oil and natural gas production. Direct ownership of shipping fleets provides strategic advantages in maintaining energy movements through critical waterways, such as the Strait of Hormuz, particularly amidst regional geopolitical tensions and fluctuating freight rates.