ADNOC Logistics & Services Acquires 11 VLCCs and VLGCs for $1.3 bn

ADNOC Logistics & Services has purchased eleven tankers to six Very Large Crude Carriers (VLCCs) and five Very Large Gas Carriers (VLGCs) to for a total of $1.3 billion, with nine vessels bought second‑hand and slated for delivery in the third quarter of 2024.

Acquisition Details

The deal adds six VLCCs, each typically ranging from 300 m (984 ft) to 330 m (1,083 ft) in length and capable of carrying up to 300,000 dwt (deadweight tonnes) of crude oil, and five VLGCs, which usually transport around 80,000 dwt of liquefied petroleum gas. All eleven ships were sourced from the second‑hand market, a common strategy for rapid fleet expansion when new‑build slots are scarce.

Operational Context

ADNOC Logistics & Services (ADNOC L&S) operates a mixed fleet that serves the United Arab Emirates’ upstream and downstream sectors. By bolstering both crude and gas carriage capacity, the company can better match the fluctuating demand patterns in the Middle East, where recent cargo re‑routing has increased ton‑miles while tightening effective vessel supply.

Market Implications

The infusion of six VLCCs and five VLGCs is likely to exert upward pressure on charter rates for similar sized vessels, especially as the VLCC market has shown mixed performance this week. Competitors may respond by adjusting spot charter offers or accelerating their own acquisition programmes to maintain market share.

Strategic Significance

For ADNOC L&S, the acquisition strengthens its position as a regional carrier of both crude oil and LPG, supporting the emirate’s goal of greater self‑reliance in energy logistics. The timing aligns with a broader industry trend of operators securing second‑hand tonnage to offset new‑build lead times and to capitalize on favourable pricing cycles.