"ADNOC Logistics and Services" Signing an agreement to build four new tankers to expand the liquefied natural gas transportation fleet

Shanghai, July 10, 2017 – ADNOC Logistics and Services PLC, referred to as ADNOC Logistics and Services, announced today the signing of an agreement with the Jiangnan Basin in China to build four new liquefied natural gas carriers, each with a capacity of 175,000 cubic meters, with a total value of up to 3.3 billion dirhams ($900 million), to enhance its role in transporting the increasing global production of gas with high efficiency to meet the rapid growth in demand for it around the world.

The tankers are scheduled to be delivered to ADNOC Logistics and Services during 2029.

The signing ceremony was witnessed in Shanghai by His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and CEO of ADNOC and its group of companies, in the presence of His Excellency Hussain Al Hammadi, UAE Ambassador to the People’s Republic of China, His Excellency Hassan Jassim Al Nowais, Undersecretary of the Ministry of Industry and Advanced Technology, Mr. Wang Guoqiang, General Manager of the China State Shipbuilding Corporation Limited, and Mr. Qu Guang, Chairman of the Chinese Wanhua Chemical Industries Group.

The agreement was signed by Captain Abdul Karim Al Musabi, CEO of ADNOC Logistics and Services, and Mr. Xiao Wenlin, CEO of Jiangnan Shipyard in China.

Captain Abdul Karim Al Musabi said, on this occasion, that with the continued growth of global demand for natural gas, this investment confirms ADNOC Logistics and Services’ confidence in the solid foundations on which the liquefied natural gas shipping market is based, adding that based on the strong growth in profits and the diversification of its operations, the company continues to invest in an advanced fleet of the new generation that efficiently connects the main sources of supply and the rapidly growing centers of demand, in a way that supports the qualitative shift in the global energy sector.

This new order brings the total program for building new LNG carriers at ADNOC Logistics and Services to 18 tankers, confirming its commitment to building one of the most advanced and efficient LNG shipping fleets in the world.

ADNOC Logistics and Services had received six LNG tankers with a capacity of 175,000 cubic meters each from the Jiangnan Shipyard, with a total value of 4.4 billion dirhams ($1.2 billion), and five of them were operated under long-term contracts with ADNOC Gas for a period of up to 15 years, providing the company with stable and predictable cash flows from revenues starting in May 2026.

The additional four new-generation LNG carriers are scheduled to be operated under long-term charter contracts, which supports the sustainability of financial revenues and enhances the continuity of reliable flows of energy resources to global markets.

For his part, Xiao Wenlin appreciated the continued confidence of ADNOC Logistics and Services in the Jiangnan Shipyard after previous orders included six LNG tankers, nine giant ethane tankers, four giant ammonia tankers, and five giant liquefied petroleum gas tankers, pointing out that this agreement embodies the depth of the long-term partnership between the two parties and their joint commitment to delivering world-class ships according to the highest international standards.

During the visit of His Excellency Dr. Sultan Ahmed Al Jaber to the Jiangnan Shipyard, ADNOC Logistics and Services Company received the tanker “Mira”, which is the first of a group of four giant ammonia tankers.

During 2024, AW Shipping Company, the joint venture between ADNOC Logistics and Services and the Chinese Wanhua Chemical Industries Group, announced an investment worth 7 billion dirhams ($1.9 billion) to build four giant ammonia tankers and nine giant ethane tankers, two of which will be delivered during 2025.

The visit concluded with a ceremony for the handover and naming of the tanker “Mira”, where Rayyan Al-Shami, an analyst in the Corporate Excellence Department at ADNOC Logistics and Services, assumed the role of sponsor of the tanker, which has a capacity of 93 thousand cubic metres, making it one of the largest ammonia tankers in the world.

The company is currently building eight additional LNG carriers through Samsung Heavy Industries and Hanwha Ocean, with a total investment estimated at approximately 9.2 billion dirhams ($2.5 billion).

It is planned to be delivered starting in 2028, and all of them are under lease contracts for periods of up to 20 years with ADNOC Gas.

Taking into account its 50% stake in AW Shipping’s new shipbuilding programme, ADNOC Logistics and Services’ total investments allocated to expanding its fleet have exceeded 18.4 billion dirhams ($5 billion) since 2022.

The company adopts an investment approach based on proven customer demand and long-term contractual revenues, which enhances the stability of future revenues, supports sustainable growth, and contributes to achieving long-term value for shareholders.

The new ships are expected to enhance ADNOC Logistics and Services’ ability to effectively contribute to meeting the growing global demand for liquefied natural gas, achieve progress in implementing ADNOC’s ambitious strategy for growth and expansion in this sector, and support its global platform for marketing and trading of liquefied natural gas, within the framework of its goal to reach a total LNG marketing capacity of 47 million tons annually by 2035.

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