ADNOC inks LoI to build six LNG carriers with South Korean shipbuilders

The total deal is "presumed to reach" US$1.5Bn, according to South Korea’s national daily newspaper The Korea Times. 

ADNOC reportedly signed on with the South Korean shipyards for six vessels, with a finalised deal and details on the purchases expected in around one month’s time.

South Korea and the UAE have been deepening ties since the UAE pledged to invest some US$30Bn in South Korean economic interests in 2023. The shipbuilding deal is a small part of a much larger bilateral trade deal that has been signed during the new UAE president Mohamed bin Zayed Al Nahyan’s – and the UAE’s – first official diplomatic visit to Seoul. Prior to his presidency, the UAE leader had visited South Korea on multiple occasions. 

The Korea-UAE Comprehensive Economic Partnership Agreement reportedly takes in duty-free trade of cars and car parts, electrical products, crude oil and petrochemicals and is set to be phased in over the course of the next decade. Tariffs will be progressively eliminated on more than 90% of exports from both countries, respectively.

According to The Korea Times report, weapons imports from South Korea to the UAE form a major element of the trade deal. 

In addition to the US$1.5Bn in shipbuilding investment, the UAE is reportedly already reviewing investment possibilities on projects worth over US$6Bn ahead of the expected ratification of the trade deal by both countries in the coming weeks.