The partnership reflects ADNOC L&S’s ongoing role in supporting the energy transition, while also fostering robust industrial collaborations between the UAE and China
ADNOC Logistics and Services, a leading global energy maritime logistics company, has awarded $250 million in shipbuilding contracts to China’s Jiangnan Shipyard through AW Shipping, a joint venture between ADNOC L&S and Wanhua Chemical Group.
The contracts are for the construction of two additional very large ammonia carriers, which are set to be among the world’s largest ammonia carriers. These vessels will have a carrying capacity of 93,000 cubic meters of ammonia and are scheduled for delivery between 2027 and 2028.
The vessels will feature energy-efficient dual-fuel engines capable of running on liquefied petroleum gas (LPG) or conventional fuels.
The contract signing took place in Abu Dhabi during a special ceremony marking the opening of Jiangnan Shipyard’s first office in the Middle East. The office will serve as a strategic hub for Jiangnan Shipyard, further strengthening the industrial ties between the UAE and China.
Captain Abdulkareem Al Masabi, chairman of AW Shipping and CEO of ADNOC L&S, emphasized the significance of the contracts: «These new vessels reflect AW Shipping and ADNOC L&S’s commitment to meeting the future demand for lower-carbon energy sources such as ammonia, which are pivotal in the global energy transition. We are excited to welcome Jiangnan Shipyard as they expand their presence in Abu Dhabi, underscoring the growing cooperation between the UAE and China.»
Ammonia is increasingly seen as a key fuel in the shift towards cleaner energy, with significant potential for decarbonising industrial processes and power generation. The addition of these VLACs will not only boost the capacity for ammonia transport but also enhance ADNOC L&S’s ability to support global energy transition efforts by transporting this important low-carbon energy source.
Lin Ou, the CEO of Jiangnan Shipyard, emphasized the deepening collaboration between the companies.
«The signing of these two additional VLAC contracts further strengthens the cooperation between ADNOC L&S, Wanhua Chemical, and Jiangnan Shipyard,» he said. «It reflects our shared commitment to reducing carbon emissions in industrial processes and advancing the global energy transition.
This new Middle East representative office will serve as a launching pad for deepening our partnerships in the region and expanding our offerings in energy transportation and marine equipment.»
Kou Guangwu, the CEO of Wanhua Chemical Group, echoed this sentiment, stating, «We are delighted to extend our partnership with ADNOC L&S and Jiangnan Shipyard through these additional VLAC contracts.»
The strategic agreements highlight ADNOC L&S's leadership in maritime logistics and its growing influence in the ammonia transport sector, which is crucial for sustainable energy growth.
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