ADNOC L&S JV inks deal worth $250m for mega ammonia carriers

ADNOC Logistics and Services (ADNOC L&S), a leading global energy maritime logistics company, has awarded $250m (Dhs918m) in shipbuilding contracts to China’s Jiangnan Shipyard.

The contracts, signed through AW Shipping – a joint venture between ADNOC L&S and Wanhua Chemical Group – are for the construction of two additional very large ammonia carriers (VLACs).

These vessels are set to be among the world’s largest ammonia carriers, designed to address the growing demand for lower-carbon energy sources.

The new vessels, which will each have a carrying capacity of 93,000 cubic metres of ammonia, are scheduled for delivery between 2027 and 2028.

They will feature energy-efficient dual-fuel engines capable of running on liquefied petroleum gas (LPG) or conventional fuels.

ADNOC L&S is focused on strengthening ties, expanding fleet

The contract signing took place in Abu Dhabi during a special ceremony marking the opening of Jiangnan Shipyard’s first office in the Middle East.

The office will serve as a strategic hub for Jiangnan Shipyard, further strengthening the industrial ties between the UAE and China.

Captain Abdulkareem Al Masabi, chairman of AW Shipping and CEO of ADNOC L&S, emphasised the significance of the contracts: “These new vessels reflect AW Shipping and ADNOC L&S’s commitment to meeting the future demand for lower-carbon energy sources such as ammonia, which are pivotal in the global energy transition.

“We are excited to welcome Jiangnan Shipyard as they expand their presence in Abu Dhabi, underscoring the growing cooperation between the UAE and China.”

VLACs: A key to energy transition

Ammonia is increasingly seen as a key fuel in the shift towards cleaner energy, with significant potential for decarbonising industrial processes and power generation.

The addition of these VLACs will not only boost the capacity for ammonia transport but also enhance ADNOC L&S’s ability to support global energy transition efforts by transporting this important low-carbon energy source.

Lin Ou, chairman of Jiangnan Shipyard, highlighted the deepening collaboration between the companies. “The signing of these two additional VLAC contracts further strengthens the cooperation between ADNOC L&S, Wanhua Chemical, and Jiangnan Shipyard,” he said. “It reflects our shared commitment to decarbonising industrial processes and advancing the global energy transition. This new Middle East representative office will serve as a starting point for deepening our partnerships in the region and expanding our offerings in energy transportation and marine equipment.”

Kou Guangwu, president and CEO of Wanhua Chemical Group, echoed the sentiment, stating, “We are proud to extend our partnership with ADNOC L&S and Jiangnan Shipyard through these additional VLAC contracts.”

The strategic agreements highlight ADNOC L&S’s leadership in maritime logistics and its growing influence in the ammonia transport sector, essential for sustainable energy growth.

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