ADNOC orders four LNG carriers from Jiangnan Shipyard for $900m
Abu Dhabi National Oil Company is spending $900 million on four new LNG carriers to secure long-term shipping capacity for its 2035 production targets, reinforcing Chinese shipbuilders' dominance in the high-specification gas market.
ADNOC has ordered four next-generation liquefied natural gas carriers from China’s Jiangnan Shipyard for $900 million, with delivery scheduled for 2029. Announced on July 8, the deal specifies vessels with a capacity of 175,000 cubic metres each, to be deployed on long-term charters.
The purchase brings the state-run energy company’s newbuild program to 18 vessels. Jiangnan Shipyard has already delivered six LNG carriers to ADNOC under a previous $1.2 billion deal, five of which were deployed to ADNOC Gas in May on contracts of up to 15 years. The Chinese yard has also built nine very large ethane carriers, four very large ammonia carriers, and five very large gas carriers for the Emirati firm.
This latest acquisition provides the logistical backbone for ADNOC’s target to reach 47 million tonnes per year of marketable LNG by 2035. To manage this expanding volume, the company earlier in July launched an integrated LNG marketing and trading platform. The new entity consolidates the marketing activities of ADNOC Gas and XRG with ADNOC Trading's existing capabilities under a single commercial structure.
The fleet expansion also highlights a strategic divergence in operational resilience amid escalating regional security risks. Middle East conflicts and Iran’s closure of the Strait of Hormuz have forced ADNOC to coordinate with customers on a shipment-by-shipment basis to meet contractual commitments.
Despite reports of debris near some facilities, ADNOC’s processing infrastructure remains fully operational. This stands in contrast to regional rival QatarEnergy, which recently suffered attacks that knocked two liquefaction trains out of service.
“As global demand for natural gas continues to rise, this latest order reflects our confidence in the strong fundamentals of the LNG shipping market,” said Captain Abdulkareem Al Masabi, CEO of ADNOC Logistics and Services. “Building on our robust earnings growth and diversified operations, we are investing in a next-generation fleet to efficiently connect key supply sources with high-growth demand centres and support the global energy transformation,” Captain Al Masabi added.
The repeat business underscores the growing dominance of Chinese shipyards in the advanced LNG carrier market. “ADNOC Logistics & Services’ continued trust in Jiangnan Shipyard – following the previous orders of six LNG carriers, nine VLECs, four VLACs as well as an earlier order of five VLGCs – underscores a long-standing partnership and a shared commitment to delivering world-class vessels,” said Xiao Wenlin, Chief Executive Officer of Jiangnan Shipyard.
