Four LNG carriers worth $900m ordered by ADNOC L&S from China’s Jiangnan Shipyard
ADNOC Logistics & Services, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has placed an order for four new liquefied natural gas (LNG) carriers with China’s Jiangnan Shipyard. The deal is valued at around $900 million and covers ships each with a capacity of 175,000 cubic metres. The vessels will be built at the yard’s facilities in Shanghai, with deliveries expected in 2029. The agreement was formalised during a high-level visit, underscoring the strategic partnership between the UAE and Chinese shipbuilding.
Market Context and Fleet Expansion
ADNOC Logistics & Services, listed on the Abu Dhabi Securities Exchange, serves as the integrated shipping and logistics arm of the Abu Dhabi National Oil Company. The company operates a diversified fleet that includes LNG carriers, and this latest order is part of a deliberate strategy to expand its gas transportation capabilities in line with ADNOC’s rising production and trading volumes.
Global demand for LNG has remained robust, driven by energy security considerations and the shift toward cleaner fuels, particularly in Asian markets. This has prompted sustained ordering of new tonnage, with Chinese shipyards capturing an increasing share of high‑value gas carrier contracts. A 175,000‑cubic‑metre capacity—often referred to as a standard “new Panamax” size—offers the versatility to transit the Panama Canal while achieving strong economies of scale. The contract implies a unit cost of roughly $225 million per vessel, consistent with recent benchmarks for large LNG carriers ordered at leading yards.
Technical and Standards Implications
Although specific design disclosures will follow closer to construction, vessels of this class are widely expected to incorporate membrane containment systems—typically licensed by GTT—and be equipped with dual‑fuel propulsion capable of consuming boil‑off gas. Such configurations meet the International Maritime Organization’s Energy Efficiency Design Index (EEDI) Phase 3 standards and align with tightening emissions targets. Jiangnan Shipyard, a division of the China State Shipbuilding Corporation, has a proven track record in delivering complex gas carriers and has steadily built its LNG newbuild portfolio with repeat orders from international owners.
The 2029 delivery window points to a construction lead time of approximately four to five years, a typical schedule for large LNG newbuilds. This timeline allows the yard to incorporate the latest energy‑saving technologies, hull‑form optimisations, and potentially air‑lubrication systems, while also managing its orderbook efficiently. Compliance with international safety codes—such as the IGC Code—and classification by major societies will underpin the design, ensuring the ships can serve in challenging trade routes.
What to Watch Next
This order strengthens Jiangnan Shipyard’s LNG orderbook and reinforces China’s position as a go‑to builder for advanced gas carriers. Industry observers will watch whether ADNOC L&S exercises any options for additional units, a common practice in such frame agreements. The ships, once delivered, are expected to be deployed on long‑term charters supporting ADNOC’s own gas trade or third‑party offtake contracts, adding meaningful capacity to the global LNG fleet just as older steam‑turbine vessels retire.
The deal also carries geopolitical significance, deepening UAE‑China economic ties and highlighting the ongoing shift in shipbuilding leadership. As design and technology choices are finalised, further detail on propulsion type, containment system, and efficiency features will provide clearer insight into the competitive positioning of these vessels.
| Aspect | Details |
|---|---|
| Deal value | $900 million |
| Buyer | ADNOC Logistics & Services |
| Shipyard | Jiangnan Shipyard |
| Vessel capacity | 175,000 cubic metres |
| Number of vessels | 4 |
| Scheduled delivery | 2029 |
| Construction location | Shanghai, China |
| Estimated cost per vessel | $225 million |
With this $900 million order, ADNOC Logistics & Services expands its LNG fleet with four state‑of‑the‑art carriers from Jiangnan Shipyard, scheduled for delivery in 2029. The move reflects the company’s strategy to strengthen its shipping capacity and aligns with global LNG trade growth.
Key Figures
This story carries monetary or market figures such as $900 million, 175,000 cubic meters and 2029. They are the kind of detail worth noting up front, then confirming against the original report for exact amounts and scope.
- Deal value: $900 million Total value of the newbuild contract for four LNG carriers
- Vessel capacity: 175,000 cubic meters Cargo capacity of each LNG carrier
- Delivery year: 2029 Expected delivery schedule for the newbuilds
Why This Matters
The order underscores the growing role of Chinese shipyards in high-value gas carrier construction and ADNOC's strategy to secure LNG shipping capacity for its expanding production and trading ambitions. It also signals confidence in long-term LNG demand despite energy transition pressures.
FAQ
Who placed the order for the four LNG carriers?
The order was placed by ADNOC Logistics & Services, the shipping and logistics arm of the Abu Dhabi National Oil Company (ADNOC). The company is listed on the Abu Dhabi Securities Exchange and operates a diversified fleet.
What is the total value of the shipbuilding contract?
The contract is valued at approximately $900 million for the four vessels, which translates to an estimated $225 million per carrier, reflecting current newbuild prices for large LNG carriers.
Where and when will the ships be built?
The vessels will be constructed at Jiangnan Shipyard in Shanghai, China, and are scheduled for delivery in 2029, indicating a typical build timeline for such ships.
Why is this order significant for the LNG shipping market?
It highlights ADNOC's commitment to expanding its LNG transportation capacity and reinforces Jiangnan Shipyard's position as a major builder of LNG carriers. The order comes amid strong global LNG demand, with newbuild orders increasingly going to Chinese yards.
Sources
- ADNOC Logistics & Services (adnoc.ae)
- Jiangnan Shipyard (jnshipyard.cssc.net.cn)
Source: Splash247