ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics subsidiary of UAE’s energy giant Abu Dhabi National Oil Company (ADNOC), has joined the ‘order rush’ for very large liquid ammonia carriers (VLACs) and LNG carriers.
ADNOC L&S plans to order 6+4 175,000 m3 liquefied natural gas (LNG) carriers and 4 VLAC newbuildings, according to Trade Winds and LNG Prime. The enquiry value for the 2 types and 14 newbuildings is up to $3 billion (about Rs. 21.531 billion) due to tight shipyard slots.
ADNOC L&S plans to order large LNG carriers for the LNG receiving terminal project at Al Ruwais in the UAE, which are expected to be delivered in late 2027 or early 2028, the report said. Adnoc recently issued a tender inviting offers from yards in China and South Korea for six firm plus four optional standard-size LNG carrier newbuilds.
The vessels will feature the latest technologies and GTT’s Mark III Flex+ and NO96 Super+ membrane systems are being considered.
Industry insiders revealed that in terms of large LNG carriers, the offer of Chinese shipyards is gradually rising, and the price of the ship will further increase if it is equipped with energy-saving equipments such as air lubrication system. In contrast, South Korean shipyards in the large LNG carrier market order price has been basically maintained at 260 million U.S. dollars / ship.
However, HD Hyundai Heavy’s October 2023 contract with Qatar Energy for 17 174,000 m3 LNG carriers cost only $230 million per unit, which is 13.6% lower than the latest shipbuilding price published by Clarkson ($265 million.) HD Hyundai Heavy explained its failure to meet the newbuilding price as a result of the batch build’s ” discounts”. The company said, “In the process of repeated construction through the same design, there is a cost advantage in material prices, etc., which reduces the ship price. The same is true for other common large-scale batch orders.”
In addition to large LNG carriers, ADNOC L&S will also be one of the owners ordering VLACs. If the four VLACs are officially ordered, it will be the first time for the company to venture into the VLAC market.
With ammonia fuel receiving more and more attention in the global shipping industry, shipowners are keen to order VLACs. In 2023, the global VLAC newbuilding market placed orders for a total of 36 new vessels, all of which were contracted by Chinese and South Korean shipyards. since 2024, the VLAC newbuilding market has continued to be “hot”! As of January 22, a total of 15 VLACs have been ordered, with a total value of more than US$1.8 billion, which were all undertaken by South Korean shipyards.
It is understood that ADNOC was founded in 1971 and is a state-owned oil company in UAE.At the end of 2016, ADNOC established ADNOC L&S through the integration of its three subsidiaries.Currently, ADNOC L&S is working to renew its fleet of LNG carriers and has already placed an order for the construction of a number of 175,000 m3 LNG in Jiangnan Shipyard. The total value of the order is more than US$1.2 billion and the ships are expected to be delivered in 2025 and 2026. Equipped with GTT’s Mark III Flex membrane system and a partial reliquefaction system, this series of LNG carriers is able to meet the requirements of most LNG loading and unloading ports in the world.