Emirates News Agency – Strategic growth of ADNOC Logistics & Services critical
ABU DHABI, 1st August, 2021 (WAM) — ADNOC Logistics and Services (ADNOC L&S) is the largest and most diversified integrated maritime logistics company in the Gulf. The company, which provides logistics, shipping and marine operations, plays a critical role in enabling the UAE’s oil and gas sector and ADNOC’s goal to maximise value from every barrel of oil it produces, processes, ships and sells.
ADNOC L&S has three major business segments: Shipping, Integrated Logistics and Marine Services. The company’s Shipping arm ensures the reliable supply of crude oil, products, and gas/industry feedstock in more than 50 countries. The Integrated Logistics unit delivers fully integrated, turnkey logistics solutions that enable the entire UAE’s oil and gas supply chain, from Upstream to Downstream.
Its Marine Services segment operates a full suite of port management services across all Abu Dhabi petroleum ports, including the UAE’s largest oil spill response offering.
By combining its services across these three sectors and leveraging its four-decade long experience of delivering safe and efficient operations internationally, ADNOC L&S has emerged as a leader in shipping and integrated logistics for the energy sector in the Gulf.
The company is now scaling up its operations through large fleet modernisation and capacity expansion programme, delivering on growth plans that are primarily focused on meeting the needs of its customers within ADNOC and internationally.
ADNOC Group, ADNOC L&S’ main customer, expects to boost its crude oil production capacity to over 5 million barrels of oil per day. In its downstream sector, refining and petrochemical production capacity will also expand, as it grows its operations to meet local and global demand.
In addition, ADNOC has launched two new trading businesses, ADNOC Trading (AT) and ADNOC Global Trading (AGT). It is moving from a company that customers historically collected products from, to provide a broader service that includes the delivery of crude oil and products to customers globally.
The creation of AGT and AT has opened new growth opportunities for ADNOC L&S, and this has further enhanced the fundamental role of ADNOC L&S in the development of an integrated energy supply chain and ADNOC’s 2030 smart growth strategy.
In response to the expected increase in production capacity and the significant opportunity presented by ADNOC’s move into trading, ADNOC L&S is looking to grow the cargo volumes shipped by its vessels by up to 4 times its current volumes over the coming decade.
To support this opportunity, the company is in the midst of a strategic fleet expansion and renewal programme, offering a broader service to its customers, while assisting and enabling the growth of ADNOC’s upstream production capacity and the expansion of its downstream and petrochemical operations.
In 2020 and early 2021 ADNOC L&S added to its fleet 20 deep-sea vessels, reflecting a robust increase in owned fleet size compared to 2019. In addition to the order of five newbuilds and one recently built dual fuel VLGCs (Very Large Gas Carriers) for its AW Shipping joint venture company, it added four bulk carriers and eight VLCCs (Very Large Crude Carriers).
With the acquisition of the VLCCs, ADNOC L&S is entering the crude market with owned vessels for the first time, thereby ensuring the security of ADNOC’s supply chain through a long-term asset acquisition strategy across all cargo segments (crude, products, gas, and dry bulk).
ADNOC L&S’ product tankers fleet is also growing significantly with the recent acquisition of six LR2 (Long Range 2) product tankers, bringing the product tanker fleet from 9 to 15. LR2s are used to transport products such as gasoline, gas oil, jet fuel and naphtha over longer distances. The acquisition increases the cargo capacity of the ADNOC L&S…