ADNOC Logistics and Services (ADNOC L&S) has announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded shipbuilding contracts to Jiangnan Shipyard in China. The total value of the contracts is approximately AED7 billion ($1.9 billion).
The first contract is for the construction of nine Very Large Ethane Carriers (VLECs), priced at around AED5.1 billion ($1.4 billion).
The second contract is for two Very Large Ammonia Carriers (VLACs), priced at approximately AED900 million ($245 million), with an option for two additional VLACs at the same price.
Energy-efficient, low-carbon vessels
The new vessels will be among the world’s largest ethane and ammonia carriers, and will be equipped with energy-efficient dual-fuel engines. Additionally, the VLECs will be deployed on 20-year time charter contracts, generating an estimated AED14.7 billion ($4 billion) in revenue over the life of the contracts.
The contracts were signed in Beijing, in the presence of Dr. Sultan Ahmed Al Jaber, UAE minister of Industry and Advanced Technology and ADNOC managing director and group CEO, as well as other industry leaders.
— ADNOC Logistics & Services (@AdnocLs) July 23, 2024
Transporting lower-carbon energy sources
Captain Abdulkareem Al Masabi, chairman of AW Shipping and CEO of ADNOC L&S, stated that the new order will further support ADNOC L&S’ fleet expansion and enhance the company’s ability to transport lower-carbon energy sources, aligning with the energy transition. Additionally, the vessels are expected to generate substantial revenue streams for ADNOC L&S, reinforcing the company’s commitment to strategic investments.
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Commitment to decarbonization, quality, and delivery
Furthermore, Kou Guangwu, president and CEO of Wanhua Chemical Group, highlighted that the “green and low-carbon ships” will help Wanhua reduce transportation-related carbon emissions and contribute to the company’s decarbonization objectives.
Moreover, Lin Ou, chairman of Jiangnan Shipyard, expressed the shipyard’s commitment to delivering the vessels on time and with high quality, to support ADNOC L&S’ growth strategy and decarbonization goals.
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