Abu Dhabi National Oil Company (Adnoc) has announced that its logistics unit has signed contracts worth $4.4 billion with a number of international companies to boost its owned and chartered fleet of shipping services to meet growing global demand.

Adnoc Logistics & Services (Adnoc L&S) said as per the deal it will build 23 tankers will be used for shipping ethane, ammonia and liquefied natural gas amid growing global demand.

The company had awarded contracts worth $1.9 billion through its joint venture AW Shipping to build nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs) with Jiangnan Shipyard in China.

It also signed contracts worth $2.5 billion with Korea’s Samsung Heavy Industries and Hanwha Ocean to build 10 LNG carriers, further enhancing its ability to meet global demand for low-carbon energy.

"We expanded the size of our fleet through shipbuilding contracts that include ten new LNG carriers, nine very large ethane carriers (VLECs), and four very large ammonia carriers (VLACs), which represents a strategic step in reducing emissions globally and meeting the growing demand for energy," Abdulkareem Al Masabi, the CEO of Adnoc L&S told Wam on the sidelines of Adipec in Abu Dhabi.

The group has one of the largest diversified fleets in the Middle East region, with more than 800 owned, operated and chartered vessels.

"This enables the company to support across the energy supply chain for Adnoc Group and other global partners," stated Al Masabi.

Adnoc L&S aims to sustain its growth by enhancing its partnership with its parent company while broadening its services to attract new customers in global markets, he added.

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