Image credit: ADNOC

On July 23, 2024, ADNOC Logistics and Services plc (ADNOC L&S), a prominent global energy maritime logistics company, announced that its joint venture with Wanhua Chemical Group, AW Shipping, has awarded significant shipbuilding contracts to Jiangnan Shipyard in China. The total value of these contracts is approximately $1.9 billion (AED7 billion). The contracts were signed in Beijing at a ceremony witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, Liao Zengtai, Wanhua Chemical Group Chairman, Wu Xiande, Fuzhou Government Mayor, Kai Hu, CSTC President, Ou Lin, Jiangnan Shipyard Chairman, and Wen Gang, CSSC Chairman.

The first contract, valued at around $1.4 billion (AED5.1 billion), entails the construction of nine Very Large Ethane Carriers (VLECs). Additionally, a contract worth approximately $250 million (AED900 million) covers the construction of two Very Large Ammonia Carriers (VLACs), with an option for two more VLACs at the same price. These new vessels will feature energy-efficient dual fuel engines and rank among the world’s largest ethane and ammonia carriers. The VLECs, each with a carrying capacity of 99,000 cubic meters and powered by ethane or conventional fuels, are slated for delivery between 2025 and 2027. The VLACs, each capable of transporting 93,000 cubic meters of ammonia and powered by liquefied petroleum gas (LPG) or conventional fuels, are expected to be delivered between 2026 and 2028.