Contract signing for new large gas carriers to be built by China's Jiangnan Shipyard for AW Shipping, the joint venture formed by ADNOC Logistics and Services the Wanhua Chemical Group ADNOC L&S
Gas

ADNOC L&S joint venture places nearly US$2 billion order for new gas carriers

Baird Maritime

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.