In a major push to meet rising global demand for alternative energy carriers, the UAE has announced $4.4 billion in contracts with international partners to expand its logistics and shipping fleet. This investment is set to support the global energy transition and facilitate low-carbon fuel transport, aligning with global sustainability goals.
Of this investment, $1.9 billion has been allocated through Abu Dhabi National Oil Company (ADNOC) Logistics & Services and its joint venture, AW Shipping, for the construction of nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs) at Jiangnan Shipyard in China. These specialized vessels will help ADNOC reduce carbon emissions in its operations while enabling access to new markets for low-carbon fuels.
The UAE’s initiative also includes $2.5 billion in contracts signed with Korea’s Samsung Heavy Industries and Hanwha Ocean to build up to 10 LNG carriers. The demand for LNG is expected to increase significantly as countries worldwide adopt cleaner energy sources.
This strategic expansion reinforces ADNOC’s dedication to sustainable energy and positions the UAE as a key player in the shift to low-carbon solutions, underscoring its commitment to long-term environmental goals and a future-oriented energy market.
