Adnoc L&S buys 11 new vessels for $1.3bn to boost oil and gas exports

Adnoc Logistics and Services (Adnoc L&S) has bolstered its oil and gas shipping capabilities by acquiring 11 new vessels, totaling approximately $1.3 billion. The company's purchase includes five very large gas carriers (VLGCs) and six very large crude carriers (VLCCs), which will significantly enhance its export capacity and serve key markets.

Nine of the newly acquired vessels, consisting of six VLCCs and three VLGCs, were obtained from the secondary market and are set to arrive in the third quarter of the year. They will commence service immediately upon delivery. The remaining two vessels are newbuilds procured through a resale transaction from a Chinese shipyard, with delivery anticipated in the fourth quarter.

Adnoc L&S Chief Executive Capt Abdulkareem Al Masabi highlighted the expansion, stating that it will "expand our capacity to support Adnoc’s growing exports, serve customers in key markets and capture opportunities in international energy trade." The subsidiary has been aggressively expanding its fleet, with recent orders for liquefied natural gas (LNG) vessels scheduled for delivery in 2029.

This latest acquisition demonstrates Adnoc L&S's commitment to strategic fleet expansion and modernization, despite geopolitical challenges such as the Iran war. The company's proactive approach aims to increase its shipping platform's operational efficiency, earnings potential, and resilience, aligning with its broader LNG growth strategy.