ADNOC L&S Joint Venture Orders 13 New Very Large Gas Carriers

ADNOC Logistics and Services plc, a global energy maritime logistics company, has today announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded shipbuilding contracts to Jiangnan Shipyard in China, priced at approximately $1.9 billion in total.

The contract for the construction of nine Very Large Ethane Carriers (VLECs) is priced at approximately US$1.4 billion and the contract for two Very Large Ammonia Carriers (VLACs) is priced at approximately US$250 million, with the option for another two VLACs at the same price.

VLECs have a carrying capacity of 99,000 cubic meters each and can be powered by ethane or conventional fuels.

The VLACs have a carrying capacity of 93,000 cubic meters each for ammonia and can be powered by liquefied petroleum gas (LPG) or conventional fuels.

The contracts were signed in Beijing and the vessels are scheduled for delivery between 2026-2028.

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The new vessels will be among the world’s largest ethane and ammonia carriers and run on energy-efficient dual fuel engines. The VLECs will be deployed on 20 years’ time charter contracts, generating revenue of $4 billion (AED14.7 billion) through 180 years of contract coverage.

Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, said: “This new order by AW Shipping reinforces ADNOC L&S’ ongoing fleet expansion and will bolster our ability to transport lower-carbon energy sources and support the energy transition.

"Importantly, the vessels will generate substantial revenue streams for ADNOC L&S, underscoring our commitment to value-accretive strategic investments as we serve our customers.”

Currently, there are more than 25 VLECs in operation with different shipping companies around the world. Upon receiving the nine new vessels, AW Shipping will own one of the world’s largest fleets of VLECs.

Kou Guangwu, President & CEO of Wanhua Chemical Group, said: “These green and low-carbon ships will support Wanhua to reduce transportation carbon emissions and accelerate the decarbonization objectives and is a concrete commitment from Wanhua to better deal with the climate change challenges.”

The AW Shipping joint venture was established in 2020 to grow ADNOC L&S’ global operations and strengthen the industrial relationship between the UAE and China.

This latest order aligns with ADNOC L&S’ vision to deploy more than US$5 billion in value accretive investments following the Company’s ADX listing in June 2023.

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