Adnoc Logistics & Services (Adnoc L&S), via its joint venture AW Shipping, has awarded contracts totaling $1.9 billion for the construction of nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs) with Jiangnan Shipyard in China. Additionally, the company has inked contracts worth $2.5 billion with Korea’s Samsung Heavy Industries and Hanwha Ocean to build up to 10 LNG carriers, bolstering its capacity to meet the global demand for low-carbon energy.
Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, highlighted that the company is expanding its owned and chartered fleet of integrated logistics and shipping services to cater to the increasing global demand, with contracts totaling $4.4 billion signed with various international firms. "We have also augmented the size of our fleet through shipbuilding contracts that include 10 new LNG carriers, 9 Very Large Ethane Carriers, and 4 Very Large Ammonia carriers, marking a strategic move to reduce global emissions and meet the escalating demand for energy," he stated.
Al Masabi emphasized that the investment is geared towards supporting the energy transition and opening new markets for the company, while advancing its efforts to cut carbon emissions in industrial operations. The company has implemented an integrated strategy to leverage global expertise, enhancing the skills of its workforce, which comprises over 10,000 individuals and more than 3,200 seafarers.
"The company is dedicated to supporting the local economy through the In-Country Value Enhancement Programme, with a contribution rate of 86% in 2023," he noted. He also explained that the company continues to adopt sustainable environmental practices, including safeguarding the marine environment and preserving the UAE’s maritime heritage.
Adnoc L&S boasts the largest diversified fleet in the region, with over 800 owned, operated, and chartered vessels, supported by Integrated Logistics facilities that offer comprehensive logistics, shipping, and marine services. This setup enables the company to support the energy supply chain for Adnoc Group and other global partners.
The company aims to sustain its growth by strengthening its partnership with Adnoc Group and expanding its services to attract new customers in global markets. "We are embracing artificial intelligence (AI) technologies to enhance operational efficiencies and reduce emissions, in addition to fostering a 100% HSE culture, which creates new value for customers and shareholders," Al Masabi said.
The company’s growth strategy is centered on key pillars: expanding service offerings, diversifying into new sectors, entering global markets, and increasing fleet size. "This strategy aims to ensure the responsible provision of energy needed for societal and economic growth while reinforcing Adnoc’s status as a leading integrated global energy company," he added.
As part of its business expansion, Adnoc L&S has ventured into new sectors such as Engineering, Procurement, and Construction (EPC) with a contract worth $975 million to build an artificial island. "We are also enhancing our global presence by entering new markets and have announced the acquisition of “Navgi8,” pending regulatory approvals," he stated. "Upon completion, this acquisition will consolidate 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."
Al Masabi further explained that Adnoc L&S is fully adopting AI technologies to boost operational efficiency and reduce emissions, while establishing a comprehensive HSE 100% culture. The company is leveraging advanced AI solutions alongside its fleet expansion strategy to enhance performance and sustainability, resulting in a 60% reduction in delivery times for critical equipment and a 30% decrease in carbon emissions within its logistics sector.
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