Adnoc L&S adds five very large gas carriers to shipping fleet
The five vessels, each with a capacity of 86,000 cubic metres, will be used to transport liquified petroleum gas
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Adnoc Logistics & Services, the shipping and maritime logistics unit of Adnoc, added five new-build very large gas carriers (VLGC) to its fleet to meet the growing global demand for gas.
The gas carriers were built at the Jiangnan shipyard in Shanghai, China, and will be owned and operated by AW Shipping, an Adnoc L&S joint venture with Wanhua Chemical Group, the company said in a statement on Thursday.
The five VLGCs, named Al Ain, Zakher, Rabdan, Al Salam and Baynounah, each with a capacity of 86,000 cubic metres to transport liquified petroleum gas (LPG), have dual-fuel engine technology.
They use LPG as their primary fuel source, making them among the lowest-emission vessels of this type, the statement said.
“The addition of these new-build, lower-emission vessels to Adnoc L&S’s growing fleet of more than 800 owned, operated and chartered vessels, represents another important milestone as we bolster our capacity to capitalise on growing global energy demand,” said Capt Abdulkareem Al Masabi, chief executive of Adnoc L&S and chairman of AW Shipping.
“Natural gas is playing an increasingly important role in the global energy landscape and Adnoc L&S is expanding its gas fleet to serve customer demand, while reducing the carbon intensity of our vessels.”
The demand for LPG, which is used mainly as a cooking fuel stored in cylinders for stoves, as well as a propellant, refrigerant, as vehicle fuel and as feedstock for the petrochemicals industry, has been rising worldwide.
It is expected to play a key role in helping the transition to clean energy, especially in cooking, according to the International Renewable Energy Agency.
AW Shipping was formed in 2020 to support a 10-year LPG supply contract signed in 2018 between Adnoc and Wanhua.
The company will use the new ships to transport LPG cargoes sourced from Adnoc and other global suppliers to Wanhua’s manufacturing bases in China and around the world, the statement said.
“The AW Shipping JV has added great value to both Wanhua and Adnoc L&S by optimising the supply chain,” said Kou Guangwu, chief executive of Wanhua Chemical Group.
Jiangnan Shipyard, meanwhile, which delivered the VLGCs, is also building liquefied natural gas (LNG) carriers for Adnoc L&S, scheduled for delivery in 2025 and 2026.
Adnoc L&S is undertaking a global expansion programme, aimed at providing a broader service to its customers while supporting and enabling the growth of Adnoc’s upstream and downstream operations.
In July last year, Adnoc L&S bought Zakher Marine International, an Abu Dhabi company that owns and operates offshore support vessels.
In June, the company also bought three new LNG ships to meet increasing global demand for the gas.
Updated: April 13, 2023, 11:20 AM