ADNOC Logistics and Services plc has announced that AW Shipping, a joint venture with Wanhua Chemical Group, has awarded contracts totaling $250 million (approximately AED918 million) to Jiangnan Shipyard in China for the construction of two additional Very Large Ammonia Carriers (VLACs).
These shipbuilding agreements were finalized in Abu Dhabi during the opening ceremony for Jiangnan Shipyard’s inaugural office in the Middle East. Earlier contracts for the initial two vessels, with an option for two more, were signed in July 2024 in China.
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 are designed to hold 93,000 cubic meters of ammonia, positioning them among the largest of their kind globally. The vessels are expected to be delivered between 2027 and 2028 and will feature energy-efficient dual-fuel engines capable of operating on liquefied petroleum gas or traditional fuels.
Lin Ou, Chairman of Jiangnan Shipyard, stated, “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 processes by all parties and injects new impetus into the future energy transition. CSSC Jiangnan Shipyard will take the Middle East Representative Office as a new starting point to strengthen cooperation with oil and gas companies, shipping companies, and other related enterprises in Middle Eastern countries, while paying attention to the market demands for energy transportation and marine equipment, and continuously innovating and improving across multiple fields.”
Kou Guangwu, President & CEO of Wanhua Chemical Group, commented, “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.”
