ADNOC LS Orders Four LNG Carriers From Jiangnan in $900M Deal

Abu Dhabi-based ADNOC Logistics and Services has committed 900 million dollars to a quartet of LNG carriers at China's Jiangnan Shipyard, becoming the latest owner to turn to Chinese yards for gas tonnage. The four 175,000-cubic-metre vessels are scheduled for delivery in 2029 and will be chartered under long-term arrangements to enhance revenue visibility. The order brings the company's LNG carrier newbuilding programme to 18 vessels and forms part of a fleet expansion exceeding 5 billion dollars since 2022.

 

Details of the Order

 

ADNOC LS has placed a significant order at a leading Chinese shipyard. The company disclosed on 10 July that it had contracted four LNG carriers at Jiangnan Shipyard. Jiangnan is a subsidiary of the state shipbuilding group CSSC. Each vessel will have a capacity of 175,000 cubic metres. Deliveries are scheduled to take place in 2029.

The order represents a substantial financial commitment for the company. The four vessels carry a combined value of around 900 million dollars. ADNOC LS said the newly contracted vessels will be chartered under long-term arrangements. These arrangements are intended to enhance visibility on future revenues. They are also expected to support stable energy flows to global markets.

 

Expansion of the LNG Fleet

 

The latest order significantly advances the company's newbuilding programme. It brings ADNOC LS's LNG carrier newbuilding total to 18 vessels. The company has already taken delivery of six 175,000-cubic-metre carriers from Jiangnan. Those six vessels were valued at 1.2 billion dollars. This demonstrates a sustained pattern of investment in LNG tonnage.

Charter coverage forms an important part of this fleet strategy. Five of the delivered vessels are employed on charters of up to 15 years. These charters are with ADNOC Gas, providing long-term employment for the ships. Securing extended charters underpins the commercial case for continued fleet growth. It also reduces the revenue risk associated with committing capital to newbuildings.

 

Jiangnan's Active Gas Carrier Order Book

 

Jiangnan has been notably busy in the gas carrier segment this year. The yard has secured multiple orders from leading international shipowners. COSCO, Eastern Pacific Shipping and Shandong Ocean Energy have all signed LNG carrier contracts. This activity reflects strong demand for gas carrier construction at Chinese yards. It positions Jiangnan as a significant player in the segment.

The yard's order book extends beyond LNG carriers to other gas vessels. Owners including Thenamaris, Eastern Pacific Shipping and Southwest Maritime have placed orders for very large ammonia carriers. This diversity of orders spans several categories of gas transport. It demonstrates the yard's growing role across multiple gas carrier types. The breadth of activity underlines China's expanding presence in specialised shipbuilding.

 

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Strategic Rationale

 

Company leadership framed the order around confidence in the LNG market. The chief executive highlighted expected continued growth in global natural gas demand. He said the order reflects confidence in the LNG shipping market's strong fundamentals. This rationale ties the fleet expansion to a positive long-term demand outlook. It presents the investment as a response to anticipated market conditions.

The order also reinforces a long-standing commercial relationship. Jiangnan's leadership pointed to ADNOC LS's continued trust in the shipyard. This trust reflects a partnership built over successive orders. Both parties emphasised a shared commitment to delivering high-quality vessels. Repeat orders of this kind strengthen the working relationship between owner and builder.

 

Broader Fleet Investment

 

The LNG order forms part of a much larger expansion effort. The contract signing coincided with the delivery of the first of four very large ammonia carriers for ADNOC LS. This vessel is also being built at Jiangnan Shipyard. The timing links the new LNG commitment to ongoing deliveries from the same yard. It illustrates the pace of ADNOC LS's fleet development.

The company's investment extends across joint ventures and multiple vessel types. In 2024, AW Shipping, a joint venture with Wanhua Chemical Group, placed a 1.9 billion dollar order. That order covered four ammonia carriers and nine very large ethane carriers. Including its share in that programme, ADNOC LS has committed more than 5 billion dollars to fleet expansion since 2022. This scale reflects an aggressive long-term growth strategy across gas transport.