ADNOC L&S Awards US$250 Million Shipbuilding Contracts to Jiangnan Shipyard

ADNOC L&S, a global energy maritime logistics company, has announced that its joint venture, AW Shipping, with Wanhua Chemical Group, has awarded shipbuilding contracts worth US$250 million to China’s Jiangnan Shipyard. These contracts are for the construction of two additional Very Large Ammonia Carriers (VLACs).

The contracts were signed during an official ceremony in Abu Dhabi, marking the opening of Jiangnan Shipyard's first office in the Middle East. The initial agreement for the two vessels, with an option for two more, was signed in China in July 2024. This partnership aims to strengthen the ties between the UAE and China in the industrial and logistics sectors, reflecting ADNOC L&S’s growing focus on meeting future energy demands.

The new VLACs will each have a capacity of 93,000 cubic meters of ammonia, positioning them among the largest ammonia carriers globally. These vessels are expected to be delivered between 2027 and 2028 and will feature dual-fuel engines capable of running on liquefied petroleum gas (LPG) or conventional fuels. This energy-efficient design supports ADNOC L&S’s commitment to lower-carbon energy solutions.

This development aligns with ADNOC L&S’s long-term strategy to support the global energy transition. The collaboration between the UAE and China in this sector highlights the increasing importance of sustainable logistics solutions, particularly in the transportation of ammonia, which is expected to play a critical role in future energy systems.

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