ADNOC Logistics And Services Awards $250 Million Contracts For Very Large Ammonia Carriers

ADNOC Logistics and Services plc has revealed that AW Shipping, a joint venture with Wanhua Chemical Group, has awarded $250 million (AED918 million) contracts to Jiangnan Shipyard in China. These contracts are for constructing two additional Very Large Ammonia Carriers (VLACs). The agreements were signed during the opening ceremony of Jiangnan Shipyard's first Middle East office in Abu Dhabi.

The initial agreements for two vessels, with an option for two more, were signed in China in July 2024. Each VLAC will have a capacity of 93,000 cubic meters of ammonia, ranking them among the largest globally. Delivery is expected between 2027 and 2028. The ships will feature dual-fuel engines that can run on liquefied petroleum gas or traditional fuels.

Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, stated: "These contracts demonstrate AW Shipping and ADNOC L&S’s commitment to meeting future demand for lower-carbon energy sources such as ammonia, which are increasingly vital in powering the energy transition. We are pleased to welcome Jiangnan Shipyard as they establish a new office in Abu Dhabi, strengthening our growing partnership and highlighting the robust industrial ties between the UAE and China."

Lin Ou, Chairman of Jiangnan Shipyard, expressed that these contracts enhance cooperation among ADNOC L&S, Wanhua Chemical, and Jiangnan Shipyard. He noted: "The signing of these two additional VLAC contracts further deepens the cooperation and friendship among ADNOC L&S, Wanhua Chemical and Jiangnan Shipyard, which is a concrete embodiment of the joint practice of decarbonizing industrial process by all parties, and injects new impetus into the future energy transition."

Kou Guangwu, President & CEO of Wanhua Chemical Group, remarked: "We are pleased to sign the two additional VLAC contracts through AW Shipping during the opening ceremony of Jiangnan Shipyard’s Abu Dhabi office, which shows the solid commitment from Wanhua Chemical to support the energy transition for future sustainable growth. We value highly the strategic partnership with ADNOC L&S and Jiangnan Shipyard, and these new shipbuilding orders demonstrate our intention to take our relationship to another level."

Jiangnan Shipyard plans to use its Middle East Representative Office as a base to strengthen ties with oil and gas companies in the region. They aim to focus on market demands for energy transportation while innovating across various fields.

This collaboration highlights significant industrial connections between UAE and China. It underscores both nations' dedication to advancing sustainable energy solutions through strategic partnerships.

With inputs from WAM