ADNOC L&S Joint Venture Welcomes First Very Large Ethane Carrier To Expand Fleet Capacity

ADNOC Logistics and Services plc (ADNOC L&S) has announced the delivery of Gas Yongjiang, a Very Large Ethane Carrier (VLEC), from Jiangnan Shipyard in China. This vessel is the first of nine VLECs for AW Shipping, a joint venture with Wanhua Chemical Group. It will operate under a 20-year charter agreement. The remaining eight vessels are expected between 2025 and 2027.

The fleet is anticipated to generate around $4 billion (AED14.7 billion) in revenue through long-term contracts spanning 180 years. Once all vessels are operational, AW Shipping will manage one of the largest VLEC fleets globally. Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, highlighted the significance of this milestone in expanding their fleet and entering the global ethane shipping market.

Captain Abdulkareem Al Masabi stated, "The delivery of Gas Yongjiang, the first VLEC to join the AW Shipping fleet, marks a significant milestone in our fleet expansion and entry into the global ethane shipping market. These nine vessels, purpose-built to transport ethane, a critical feedstock for the global petrochemical industry, will boost our capacity to meet growing demand, particularly in fast-growing Asian markets and reinforce our leadership in lower-carbon energy transport."

Kou Guangwu, President & CEO of Wanhua Chemical Group, expressed enthusiasm about their partnership with ADNOC L&S since 2018. He noted that their collaboration has evolved from raw material supply to include shipping operations. Both companies aim to enhance cooperation for high-value chemical projects by leveraging resource integration and compatible strengths for strategic success.

Lin Ou, Chairman of Jiangnan Shipyard, commented on the naming of Gas Yongjiang and Al Reef as a testament to Jiangnan Shipyard's dedication to constructing intelligent, high-value vessels. He said they are committed to innovation and customer-focused collaboration with ADNOC L&S and Wanhua Chemical to explore new possibilities in intelligent manufacturing.

The Gas Yongjiang is among the world's largest ethane carriers with a capacity of 98,000 cubic meters. Its design includes optimised hulls and energy-saving technologies that significantly reduce emissions while promoting sustainable growth.

Modernising LNG Fleet

ADNOC L&S also welcomed Al Reef, the third out of six advanced LNG carriers from Jiangnan Shipyard. This addition aligns with ADNOC L&S's strategy to modernise its gas fleet and strengthen its role in meeting global energy needs.

The naming ceremony for both vessels was attended by senior executives from ADNOC L&S, Wanhua Chemical Group, and Jiangnan Shipyard. Sharifa Al Mulla served as the ceremonial sponsor for both ships. She is notable for being the first Emirati female officer aboard an ADNOC L&S commercial vessel.

This development underscores ADNOC L&S's commitment to enhancing its capabilities in energy transportation while fostering strategic partnerships that drive innovation and sustainability within the industry.

With inputs from WAM