ADNOC Logistics and Services has announced that its joint venture with Wanhua Chemical Group, AW Shipping, has awarded contracts valued at $250 million (AED 918 million) to Jiangnan Shipyard in China for the construction of two additional Very Large Ammonia Carriers (VLACs).
The contracts were signed in Abu Dhabi during the inauguration of Jiangnan Shipyard’s first office in the Middle East. Initially, in July 2024, the companies had signed contracts for two vessels, with an option for two more. The new VLACs, each capable of carrying 93,000 cubic meters of ammonia, will be among the largest of their kind globally.
Scheduled for delivery between 2027 and 2028, the vessels will feature energy-efficient dual-fuel engines, allowing them to operate on either liquefied petroleum gas or traditional fuels.
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, emphasized the commitment of both companies to meet the growing demand for lower-carbon energy sources like ammonia, which play a crucial role in the energy transition.
Leaders from Jiangnan Shipyard and Wanhua Chemical Group expressed their enthusiasm for the partnership. Lin Ou, Chairman of Jiangnan Shipyard, noted that the new contracts reinforce collaboration in decarbonizing industrial processes and aim to enhance cooperation with Middle Eastern oil and gas companies.
Furthermore, Kou Guangwu, President & CEO of Wanhua Chemical Group, highlighted the significance of these contracts as a demonstration of their commitment to supporting the energy transition and deepening their strategic partnership with ADNOC L&S and Jiangnan Shipyard.
