ADNOC L&S venture splurges $1.9bn on ethane and ammonia carrier newbuilds 

AW Shipping, a joint venture of ADNOC Logistics & Services (ADNOC L&S) and China’s Wanhua Chemical Group, has splashed around $1.9bn on up to 13 newbuilds at Jiangnan Shipyard.

The jv has contracted nine firm very large ethane carriers (VLECs) worth about $1.4bn in total and up to four very large ammonia carriers (VLACs) at $125m each.

The vessels will be among the largest in the two sectors and run on dual-fuel engines, ADNOC L&S said.

AW Shipping was formed in 2020 to support a 10-year LPG supply contract, signed in 2018 between ADNOC and Wanhua. The unit ships LPG cargoes sourced from ADNOC and other global suppliers to Wanhua’s manufacturing bases in China and worldwide. 

The VLEC newbuilds will have a carrying capacity of 99,000 cu m and be fixed on 20-year contracts each, priced in aggregate at $4bn. ADNOC L&S noted that, with more than 25 VLECs currently on the water, AW Shipping is poised to own one of the largest fleets. Deliveries are set between 2025 and 2027.

Meanwhile, the VLACs will have a capacity of 93,000 cu m and start delivering in 2026. Earlier this year, brokers told Splash AW Shipping had returned to Jiangnan for two firm and two optional newbuilds that will follow five 86,000 cu m LPG units already delivered from the Chinese yard.

Commenting on the orders, Abdulkareem Al Masabi, chairman of AW Shipping and chief executive of ADNOC L&S, said: “This new order by AW Shipping reinforces ADNOC L&S’ ongoing fleet expansion and will bolster our ability to transport lower-carbon energy sources and support the energy transition. Importantly, the vessels will generate substantial revenue streams for ADNOC L&S, underscoring our commitment to value-accretive strategic investments.”