ADNOC Logistics and Services (ADNOC L&S), in partnership with Wanhua Chemical Group through AW Shipping, has announced the awarding of $250 million contracts to China’s Jiangnan Shipyard for the construction of two Very Large Ammonia Carriers (VLACs).
The contracts, signed in Abu Dhabi during the opening ceremony of Jiangnan Shipyard’s first Middle East office, follow an initial agreement made in July 2024 in China for two vessels, with an option to order an additional two.
The new VLACs will each have a capacity of 93,000 cubic metres, ranking them among the world’s largest ammonia carriers.
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, emphasised the importance of the new contracts, “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, set for delivery between 2027 and 2028, will feature energy-efficient dual-fuel engines that can run on both liquefied petroleum gas (LPG) and conventional fuels.
This technology supports ADNOC L&S’s mission to facilitate cleaner energy transportation, aligning with global decarbonisation goals.
Lin Ou, Chairman of Jiangnan Shipyard, noted the strategic significance of the contracts, “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 decarbonising industrial process 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 East 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, highlighted the importance of these contracts for the partnership’s long-term vision, “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.”
The award of these contracts signals a key investment in green shipping solutions as ADNOC L&S and its partners continue to adapt to the increasing demand for cleaner energy sources, such as ammonia, which is integral to the global energy transition.
Source: Logistics Middle East
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