ADNOC Logistics and Services Plc (ADNOC L&S), a leading global energy maritime logistics company, has announced a significant contract award worth $250 million (AED 918 million) to China’s Jiangnan Shipyard. The deal involves the construction of two additional Very Large Ammonia Carriers (VLACs) for AW Shipping, a joint venture between ADNOC L&S and Wanhua Chemical Group. These vessels, which will be among the largest ammonia carriers in the world, are expected to be delivered by 2028.
New vessels will be among the world’s largest ammonia carriers, addressing rising demand for lower-carbon energy sources
The contract signing took place in Abu Dhabi during the opening ceremony of Jiangnan Shipyard’s first office in the Middle East, marking a milestone in the collaboration between the UAE and China. The initial agreement for two VLACs, with the option for an additional two vessels, was signed in July 2024 in China.
ADNOC Commitment to Lower-Carbon Energy
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, emphasized the strategic importance of the deal, stating, “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 new VLACs will each have a capacity of 93,000 cubic meters, positioning them as some of the world’s largest ammonia carriers. In response to the increasing demand for environmentally friendly energy solutions, the vessels will be equipped with energy-efficient dual-fuel engines, capable of running on liquefied petroleum gas (LPG) or conventional fuels. This flexibility will enable them to support the ongoing energy transition while ensuring efficient operations across various fuel types.
Strengthening Strategic Partnerships
Lin Ou, Chairman of Jiangnan Shipyard, highlighted the importance of the partnership between the involved companies, noting, “The signing of these two additional VLAC contracts further deepens the cooperation and friendship among ADNOC L&S, Wanhua Chemical, and Jiangnan Shipyard. This collaboration reflects our joint efforts to decarbonize industrial processes and inject new momentum into the future energy transition. With the opening of our Middle East Representative Office, Jiangnan Shipyard is committed to strengthening ties with oil and gas companies, shipping firms, and other enterprises in the region, while continually innovating to meet the growing demands of the energy transportation sector.”
Wanhua Chemical Group’s President & CEO, Kou Guangwu, expressed similar sentiments, emphasizing the strategic nature of the collaboration and its long-term impact on the energy transition. He said, “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. These new shipbuilding orders reflect our intention to elevate our relationship with ADNOC L&S and Jiangnan Shipyard to new heights.”
Supporting Energy Transition and Growth
The award of these new VLAC contracts aligns with ADNOC L&S’s broader strategy of expanding its shipping fleet and enhancing its capabilities in the global maritime logistics sector. With ammonia becoming an increasingly important fuel for the global energy transition, these vessels will play a crucial role in meeting the rising demand for low-carbon energy transportation solutions.
AW Shipping, a joint venture established in 2020, focuses on providing shipping services for liquefied gas and petrochemical products. The addition of these two new VLACs further strengthens AW Shipping’s position as a key player in the energy transportation sector and supports ADNOC L&S’s long-term growth strategy.
This major development signals a robust commitment to fostering industrial collaboration between the UAE and China while meeting the growing demand for greener energy transport solutions in the global market.
About ADNOC Logistics & Services
ADNOC Logistics & Services Plc, listed on the Abu Dhabi Securities Exchange (ADX symbol ADNOCLS / ISIN AEE01268A239), is a global energy maritime logistics company headquartered in Abu Dhabi. The company operates through three primary business units: integrated logistics, shipping, and marine services, delivering energy products to over 100 customers across more than 50 countries. ADNOC L&S is a key player in supporting the energy transition, with a strong focus on sustainability, innovation, and operational excellence.
Source ADNOC Logistics & Services