ADNOC Logistics and Services (ADNOC L&S), based in the UAE, has announced a major shipbuilding deal through its joint venture with China’s Wanhua Chemical Group. The partnership, AW Shipping, has signed contracts with Jiangnan Shipyard in China, valued at approximately $1.9 billion.
The deal includes two primary contracts: one for nine very large ethane carriers (VLECs) worth about $1.4 billion and another for two very large ammonia carriers (VLACs) at around $250 million. There is also an option for two additional VLACs at the same price.
The new vessels are set to become some of the largest ethane and ammonia carriers globally. They will feature energy-efficient, dual-fuel engines. ADNOC L&S revealed that the VLECs will be used in 20-year time charter contracts, potentially generating $4 billion in revenue over 180 years.
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, emphasized that this new order supports ADNOC L&S’s fleet expansion. It will enhance the company’s capability to transport lower-carbon energy sources and aid in the energy transition.
Currently, over 25 VLECs operate globally. With the addition of the nine new vessels, AW Shipping is expected to hold one of the largest VLEC fleets worldwide.
The VLECs will each have a capacity of 99,000 cubic meters and can be powered by either ethane or conventional fuels. They are expected to be delivered between 2025 and 2027.
The VLACs will each carry 93,000 cubic meters of ammonia and can be fueled by liquefied petroleum gas (LPG) or conventional fuels. These vessels are slated for delivery between 2026 and 2028.