Key facts
- Adnoc Logistics and Services is acquiring 11 tankers for $1.3 billion.
- The new fleet includes six very large crude carriers (VLCCs) and five very large gas carriers (VLGCs).
- This expansion aims to increase shipping capacity for crude oil and LPG.
- The UAE is preparing for higher oil and gas exports, targeting 5mn b/d capacity by 2027.
- Nine acquired vessels are due for delivery this quarter, with two newbuilds following in Q4.
Abu Dhabi state-owned Adnoc's logistics arm has agreed to acquire 11 tankers for $1.3 billion, expanding its crude and LPG shipping capacity as the UAE prepares for higher oil and gas exports. The acquisitions comprise six very large crude carriers (VLCCs), each capable of carrying around 2 million barrels of oil, and five very large gas carriers (VLGCs). These additions will increase Adnoc Logistics and Services' crude tanker fleet to 14 vessels and its gas fleet to 12. Nine of the vessels were acquired on the secondary market and are due for delivery this quarter, with two newbuild VLGCs acquired through a Chinese shipyard due to follow in the fourth quarter. The VLCC acquisitions come as Adnoc prepares for higher crude exports, with the UAE targeting oil production capacity of 5 million barrels per day by 2027. They could give the company greater control over deliveries at a time when the US-Iran conflict has disrupted traffic through the Strait of Hormuz and tightened tanker availability. Adnoc's 1.8 million b/d Adcop pipeline running from Habshan to Fujairah has provided a partial bypass of the strait since the war began. The company plans to expand the pipeline's capacity to around 3.3 million b/d by 2027, freeing up more crude for export from Fujairah. The latest acquisitions extend a rapid expansion of Adnoc's shipping business. Last month, Adnoc Logistics and Services ordered four LNG carriers worth about $900 million ahead of the planned 2028 start-up of Adnoc's 9.6 million tonnes per year Ruwais LNG export terminal. The company also added 32 tankers to its fleet through last year's $1.04 billion acquisition of an 80% stake in Navig8.