UAE-based shipowner ADNOC Logistics and Services (ADNOC L&S) has confirmed that AW Shipping, its joint venture with the Wanhua Chemical Group of China, has awarded shipbuilding contracts to China's Jiangnan Shipyard priced at approximately US$1.9 billion in total. The contract for the construction of nine very large ethane carriers (VLECs) is priced at approximately US$1.4 billion and the contract for two very large ammonia carriers (VLACs) is priced at approximately US$250 million, with the option for another two VLACs at the same price.
ADNOC L&S said the new vessels will be among the world’s largest ethane and ammonia carriers and will run on energy-efficient, dual-fuel engines. The company added that the VLECs will be deployed on 20 years’ time charter contracts, generating revenue of US$4 billion through 180 years of contract coverage.
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, said the new order by AW Shipping reinforces ADNOC L&S’ ongoing fleet expansion and will bolster the company's ability to transport lower-carbon energy sources and support energy transition.
Currently, there are more than 25 VLECs in operation with different shipping companies around the world. ADNOC L&S said that, upon receiving the nine new vessels, AW Shipping will own one of the world’s largest fleets of VLECs.
The VLECs will each have a carrying capacity of 99,000 cubic metres and can be powered by ethane or conventional fuels. They are scheduled for delivery between 2025 and 2027.
The VLACs will each have a carrying capacity of 93,000 cubic metres of ammonia and can be powered by liquefied petroleum gas (LPG) or conventional fuels. These ships are scheduled for delivery between 2026 and 2028.