ADNOC Logistics and Services plans to add 25 new crude and gas tankers to its fleet over the next five years to capitalise on growth opportunities in maritime markets and to meet the strategic needs of both its parent company and the UAE in general.
“We have set out an ambitious five-year strategy for growth which defines our intent to meet ADNOC and the UAE’s present and future requirements, while pursuing opportunities in fast growing global markets,” says Capt. Abdulkareem Al Masabi, ADNOC Logistics & Services, chief executive.
“The delivery of ADNOC Group’s 2030 smart growth strategy will result in a substantial increase in the company’s production of crude oil, refined products and petrochemicals,” said Al Masabi.
“Combined with ADNOC’s move into trading, which means it will take greater control over the delivery of its products to customers and end users, ADNOC Logistics & Services is expected to grow and diversify in order to meet the ever complex and evolving needs of the industry,” he added.
ADNOC Logistics and Services will this year take delivery of three new vessels, which it plans to purchase from the second-hand market.
This will be the first phase of a programme that will eventually boost the merchant fleet by 25 ships over a five-year period. These planned acquisitions will include the company’s first vessels designed for crude oil transportation, as well as additional gas carriers and bulkers.
By boosting its merchant fleet, parent company ADNOC will be able to sell more of its commodities on a ‘delivered basis’, increase its global reach, unlock new market opportunities and extend the value of its supply chain.
ADNOC Logistics & Services is a crucial link in the ADNOC supply chain, delivering oil, gas and petroleum products to customers across the world.
ADNOC Logistics & Services recently signed a Memorandum of Understanding with China’s Wanhua Petrochemical to explore the creation of a joint venture, to pave the way for the transport of greater gas volumes between the UAE and China in line with market demand.
Wanhua Petrochemical is an existing customer of ADNOC, having signed a 10-year LPG purchase contract for around 1 million tonnes a year.
ADNOC Logistics & Services was formed in late 2016 from the amalgamation of three ADNOC subsidiaries, ADNATCO, IRSHAD and ESNAAD.
Following the integration, ADNOC Logistics & Services says it has increased revenues by 34%, while the company’s net operating profit has risen 220%.