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UAE’s Adnoc buying two new gas tankers from China as part of LNG push

Published: Updated:

Abu Dhabi is increasing its fleet of liquefied natural gas tankers as the Gulf producer raises output capacity amid a global shortage of the fuel.

State producer Abu Dhabi National Oil Co.’s shipping unit is buying two new LNG tankers from China that are expected to be delivered in 2025. They will be built at the Jiangnan Shipyard in Shanghai and bigger than any LNG vessels currently in Adnoc’s fleet, the company said.

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Adnoc is spending billions of dollars to pump more crude and gas, believing demand will stay strong for decades. Markets for both have tightened since Russia’s attack on Ukraine, which has disrupted flows.

European buyers are looking to replace Russian gas supplies, indicating demand will remain elevated beyond an immediate supply crisis that hit the continent last year. Global LNG consumption will rise 60 percent through 2030, according to Morgan Stanley.

Adnoc’s acquired 16 ocean-going vessels over the past two years, including eight of the biggest class of crude tankers, it said.

The company aims to raise oil-production capacity by a quarter to 5 million barrels a day and to become self-sufficient in gas production by the end of the decade.

The United Arab Emirates, of which Abu Dhabi is the capital, is evaluating plans to double production capacity of LNG to 12 million tons annually in the next five years.

Read more: UAE’s ADNOC and China’s Wanhua Chemical form shipping joint venture

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