AW Shipping, a joint venture between the UAE’s ADNOC Logistics and Services and Wanhua Chemical Group, has awarded shipbuilding contracts to Jiangnan Shipyard in China, valued at about US$ 1.9bn in total.
The contract covers the construction of nine Very Large Ethane Carriers (VLECs) and two Very Large Ammonia Carriers (VLACs) and includes an option for another two VLACs. The new vessels will be among the largest ethane and ammonia carriers and will run on energy-efficient dual fuel engines. The VLECs will be deployed on 20 years’ time charter contracts.
Capt Abdulkareem Al Masabi, Chairman AW Shipping and CEO ADNOC L&S, said: “This new order by AW Shipping reinforces ADNOC L&S’ ongoing fleet expansion and will bolster our ability to transport lower-carbon energy sources and support the energy transition. Importantly, the vessels will generate substantial revenue streams for ADNOC L&S, underscoring our commitment to value-accretive strategic investments as we serve our customers.”
Currently, there are more than 25 VLECs in operation with different shipping companies around the world. Upon receiving the nine new vessels, AW Shipping will own one of the world’s largest fleets of VLECs.
Kou Guangwu, Wanhua President and CEO, said: “We are extremely happy to place new VLECs and VLACs shipbuilding orders to Chinese Jiangnan Shipyard together with our strategic partner ADNOC L&S through our AW Shipping joint venture, which is a firm recognition of high-end Chinese equipment manufacturing capability and creates a solid foundation to further deepen the strategic cooperation between Wanhua and ADNOC L&S. These green and low-carbon ships will support Wanhua to reduce transportation carbon emissions and accelerate the decarbonisation objectives and is a concrete commitment from Wanhua to better deal with the climate change challenges.”
The AW Shipping joint venture was established in 2020 to grow ADNOC L&S’ global operations and strengthen the industrial relationship between the UAE and China.
Lin Ou, Chairman Jiangnan Shipyard, said: “As a global leading shipbuilding company specialised in the full series of gas carriers, Jiangnan is delighted to strengthen further cooperation and our relationship with ADNOC L&S. These newly ordered VLECs and VLACs are future-oriented green vessels developed by Jiangnan. We are committed to delivering these vessels on time and with good quality, to better help ADNOC L&S achieve its transformational growth strategy and decarbonisation objectives.”
The VLECs will have a carrying capacity of 99,000m3 each and can be powered by ethane or conventional fuels. They are scheduled for delivery between 2025-2027. The VLACs will be of 93,000 m3 ammonia capacity and can be powered by LPG or conventional fuels. They are scheduled for delivery between 2026-2028.
Image: Contract signing in Beijing for 11+2 large gas carriers (source: AW Shipping)
