ADNOC Logistics & Services (ADNOC L&S) continues to grow its owned and chartered fleet of integrated logistics and shipping services to meet growing global demand, signing contracts worth $4.4 billion to build 23 supertankers with a number of international companies.
In statements to WAM on the sidelines of ADIPEC 2024, Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, revealed that the company has expanded its fleet through shipbuilding contracts that include 10 new LNG carriers, nine very large ethane carriers, and four very large ammonia carriers. This expansion represents a strategic step in reducing emissions globally and meeting the growing demand for energy.
Expanding market reach
Through its joint venture AW Shipping, ADNOC L&S awarded contracts worth $1.9 billion to build nine very large ethane carriers (VLECs) and four very large ammonia carriers (VLACs) with Jiangnan Shipyard in China. He added that ADNOC L&S also signed contracts worth $2.5 billion with Korea’s Samsung Heavy Industries and Hanwha Ocean to build up to 10 LNG carriers, further enhancing its ability to meet global demand for low-carbon energy.
“The investment aims to support the energy transition and open new markets for the company, while advancing its efforts to reduce carbon emissions in industrial operations,” Al Masabi stated.
The company has adopted an integrated strategy to bring in global expertise which enhances the skills of a workforce of more than 10,000 individuals and more than 3,200 seafarers. “The company is committed to supporting the local economy through the In-Country Value Enhancement Programme, with its contribution rate reaching 86 percent in 2023,” he stated.
Sustainability efforts
Al Masabi also explained that the company continues to adopt sustainable environmental practices, including protecting the marine environment in which it operates and preserving the UAE’s maritime heritage. “The company’s sustainability efforts are in line with ADNOC Group’s Net Zero by 2045 target, the UAE’s Net Zero by 2050 strategy, and the International Maritime Organization’s 2050 net zero target,” he added.
ADNOC L&S is a global leader in the maritime energy logistics sector with a world-class asset base. The company provides safe, reliable, and cost-effective maritime and logistics solutions to over 100 global customers. Moreover, it manages the shipment of energy products to over 50 countries, reinforcing its position as a key partner in the global energy supply chain.
Region’s largest diversified fleet
Al Masabi added that ADNOC L&S has the largest diversified fleet in the region, with over 800 owned, operated and chartered vessels. Supporting this fleet are integrated logistics facilities that provide comprehensive and integrated logistics, shipping, and marine services. “This enables the company to support across the energy supply chain for ADNOC Group and other global partners,” he added.
In addition, he pointed out that the company aims to sustain its growth by enhancing its partnership with ADNOC Group and broadening its services to attract new customers in global markets.
Enhancing operational efficiencies with AI
ADNOC L&S continues to embrace artificial intelligence (AI) to enhance operational efficiencies and reduce emissions. Moreover, it has established a 100 percent HSE culture, which creates new value for customers and shareholders.
Al Masabi explained that ADNOC L&S is comprehensively adopting AI technologies to enhance its operational efficiency and reduce emissions while establishing a comprehensive HSE 100 percent culture.
The company is leveraging advanced AI solutions alongside its fleet expansion strategy to enhance performance and sustainability. “This approach has resulted in a 60 percent reduction in delivery times for important equipment and a 30 percent decrease in carbon emissions within its logistics sector,” he concluded.
Read: ADNOC, SEFE ink 15-year purchase agreement for Ruwais LNG project
ADNOC L&S’s growth strategy
The company is also implementing a transformational growth strategy that focuses on key pillars. This includes expanding service offerings, diversifying into new sectors, entering global markets, and increasing fleet size.
“As part of our business growth, we have entered new sectors such as engineering, procurement and construction (EPC) with a contract worth $975 million to build an artificial island,” he added.
The company is also strengthening its global expansion by entering new global markets, particularly with the acquisition of Navgi8, which is currently subject to regulatory approvals. “Upon completion of the acquisition, it will contribute to consolidating our position as a leading global energy maritime logistics company with a strong presence in 15 cities across five continents and a fleet of 32 tankers,” he added.
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