Adnoc, the United Arab Emirates’ energy giant, has recently awarded a significant contract to two renowned South Korean shipbuilders, Samsung Heavy Industries (SHI) and Hanwha Ocean (formerly known as DSME), to construct six liquefied natural gas (LNG) carriers.
This development emerged following a tender process initiated by Adnoc earlier in the year, calling for proposals from shipyards in China and South Korea for the construction of six firm, plus four optional, standard-size LNG carriers. The selected shipbuilders will each be responsible for building three LNG carriers, with the possibility of an additional two vessels per yard.
Reports suggest that the total value of the contract with SHI and Hanwha Ocean amounts to approximately $1.5 billion. These LNG carriers, each designed to hold 174,000 cubic meters, are slated to cater to Adnoc’s upcoming second LNG terminal situated in Al Ruwais. Adnoc Logistics & Services has further confirmed the partnership, revealing plans for the construction of at least 10 new LNG carriers. SHI is set to construct a minimum of three LNG carriers, with options for two more, while Hanwha Ocean will also build a minimum of three vessels, with the potential for two additional carriers.
The vessels are expected to be delivered by the year 2028, expanding Adnoc’s fleet as part of its LNG expansion strategy. In addition to this recent development, Adnoc is in the midst of diversifying its LNG activities. The organization plans to enhance its LNG production capacity by constructing a second terminal in Al Ruwais, comprised of two liquefaction trains with a collective capacity of 9.6 million tons per annum (mtpa). This expansion will more than double Adnoc’s existing LNG production capabilities, positioning the company for significant growth in the global LNG market.
Furthermore, Adnoc has been proactive in securing long-term LNG supply agreements with international partners. Most notably, agreements have been reached with EnBW from Germany, SEFE from Germany, ENN Natural Gas from China, and others. These agreements highlight Adnoc’s commitment to strengthening its position in the LNG sector and expanding its global reach. The organization has also made strategic investments in various international LNG projects, further solidifying its presence in the global energy landscape.
