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ADNOC Logistics and Services has announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded contracts worth US $250 million (AED918 million) to China’s Jiangnan Shipyard for two additional Very Large Ammonia Carriers (VLACs).
The shipbuilding contracts were signed in Abu Dhabi on the sidelines of an opening ceremony for Jiangnan Shipyard’s first office in the Middle East. Initial orders for two vessels, with an option for a further two, were signed by the companies in China in July this year.
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, said: “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.”
The VLACs each have a carrying capacity of 93,000m3 of ammonia, making them among the largest vessels of their type in the world. Scheduled to be delivered between 2027 and 2028, the vessels will be equipped with dual-fuel engines capable of operating on liquefied petroleum gas or conventional fuels.
ADNOC L&S continues to see significant growth across all three of its business segments: Integrated Logistics, Shipping and Marine Services. Since the start of 2024, ADNOC L&S has announced the commissioning of between eight and 10 LNG carriers, two to four VLACs and nine Very Large Ethane Carriers. Moreover, its planned acquisition of leading tanker operator Navig8 is ongoing.
