ADNOC Logistics and Services plc announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded contracts totaling $250 million (AED918 million) to Jiangnan Shipyard in China for the construction of two additional Very Large Ammonia Carriers (VLACs).
The shipbuilding agreements were finalized in Abu Dhabi during the opening ceremony of Jiangnan Shipyard’s inaugural office in the Middle East. Earlier in July 2024, the companies had signed initial contracts for two vessels, with an option for two more, in China.
Commitment to lower-carbon energy
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, expressed that the contracts underscore their commitment at AW Shipping and ADNOC L&S to address the growing demand for lower-carbon energy sources like ammonia, which are crucial for the energy transition. He also mentioned the excitement of welcoming Jiangnan Shipyard as they set up their new office in Abu Dhabi, emphasizing the strengthening of their expanding partnership and the strong industrial connections between the UAE and China.
Specifications of the VLACs
The VLACs will each boast a carrying capacity of 93,000 cubic meters of ammonia, positioning them among the largest ammonia carriers globally. They are expected to be delivered between 2027 and 2028 and will feature energy-efficient dual-fuel engines that can operate on either liquefied petroleum gas or traditional fuels.
Strengthening cooperation
Lin Ou, chairman of Jiangnan Shipyard, noted that the signing of the additional VLAC contracts further enhances the cooperation and friendship between ADNOC L&S, Wanhua Chemical, and Jiangnan Shipyard. He indicated that this collaboration is a tangible example of their joint efforts to decarbonize industrial processes, contributing positively to the future energy transition. He mentioned that CSSC Jiangnan Shipyard will use the new Middle East office as a launchpad to strengthen collaborations with oil and gas companies, shipping firms, and other related enterprises in the region, while also focusing on the market needs for energy transportation and marine equipment and driving innovation across multiple sectors.
Future growth and strategic partnerships
Kou Guangwu, president & CEO of Wanhua Chemical Group, conveyed his delight in finalizing the two additional VLAC contracts through AW Shipping during the opening of Jiangnan Shipyard’s Abu Dhabi office. He indicated that this reflects Wanhua Chemical’s strong commitment to facilitating the energy transition for sustainable future growth. He emphasized the high value placed on their strategic partnership with ADNOC L&S and Jiangnan Shipyard, stating that these new shipbuilding orders signify their intention to elevate their collaboration further.
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