ADNOC LS Adds Two LNG Carriers to Orderbook in $444M Deal

Abu Dhabi-based ADNOC Logistics and Services has added two more LNG carriers to its newbuilding programme in China, exercising options for two 175,000-cubic-metre vessels worth approximately 444 million dollars. Scheduled for delivery in 2029 at CSSC subsidiary Jiangnan Shipyard, the vessels are expected to be deployed on long-term charters. The order brings the company's total spending on vessel acquisitions and newbuilding commitments this year to approximately 2.7 billion dollars, reflecting an aggressive fleet expansion strategy.

 

Details of the Order

 

ADNOC LS has expanded its newbuilding programme. It exercised options for two additional LNG carriers. These are next-generation 175,000-cubic-metre vessels. The order was placed at CSSC subsidiary Jiangnan Shipyard. The company disclosed this in a stock exchange filing.

The order carries a substantial value. The two vessels have a combined value of about 444 million dollars. They are scheduled for delivery in 2029. Upon delivery, they are expected to enter service. This service will be on long-term charters.

 

Part of a Larger Programme

 

The order builds on recent commitments. Last month, the company ordered four vessels at Jiangnan. That order represented an investment of 900 million dollars. The latest order extends this pattern. It reflects continued expansion at the same shipyard.

The cumulative investment is considerable. The latest order brings total spending this year to about 2.7 billion dollars. This covers vessel acquisitions and newbuilding commitments. It reflects a substantial commitment to fleet growth. This underscores the scale of the company's ambitions.

 

Fleet Expansion Strategy

 

The company is pursuing aggressive growth. It appears to be expanding its fleet rapidly. This targets both secondhand and newbuild vessels. It covers VLCCs alongside gas carriers. This reflects a broad-based expansion strategy.

The current fleet has grown considerably. The LNG carrier fleet now stands at 24 vessels. This comprises four legacy vessels. Six next-generation carriers have been delivered since late 2024. A further 14 vessels are under construction.

 

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Strategic Rationale

 

The expansion serves clear commercial goals. Company leadership emphasised expanding capacity. This supports ADNOC's growing exports. It also serves customers in key markets. Capturing opportunities in energy trade is a further aim.

The investment rests on financial strength. The company cited strong profitability and cash generation. These continue to support fleet expansion. This financial position enables the ambitious programme. It underpins the sustained pace of investment.

 

The Chinese Shipbuilding Context

 

The order reflects broader market trends. Chinese shipbuilders have enjoyed a strong year. They have won multiple LNG carrier contracts. China State Shipbuilding Corporation has driven this performance. Its subsidiaries have secured the majority of orders.

Two subsidiaries have been particularly active. Jiangnan Shipyard has won significant work. Hudong-Zhonghua Shipbuilding has also secured orders. Together they account for most Chinese LNG carrier orders. ADNOC LS's orders contribute to this strong performance.

 

Significance for ADNOC LS

 

The order reinforces the company's strategic direction. It continues a clear pattern of expansion. The growing fleet supports ADNOC's export ambitions. It positions the company across key energy markets. This aligns with its stated commercial objectives.

The scale of investment signals confidence. Committing 2.7 billion dollars this year is substantial. It reflects belief in future demand for the vessels. The long-term charters provide revenue security. This supports the commercial case for the expansion.