ABU DHABI - ADNOC Logistics and Services plc today announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded contracts worth $250 million (AED918 million) to China’s Jiangnan Shipyard for two additional Very Large Ammonia Carriers (VLACs).

The shipbuilding contracts were signed in Abu Dhabi on the sideline of an opening ceremony for Jiangnan Shipyard’s first office in the Middle East. Initial contracts for two vessels with the option for a further two were signed by the companies in China in July, 2024.

Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, said: “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 VLACs each have a carrying capacity of 93,000 cubic meters of ammonia, making them among the largest ammonia carriers in the world. Scheduled to be delivered between 2027 and 2028, the vessels will be equipped with energy-efficient dual-fuel engines capable of operating on liquefied petroleum gas or conventional fuels.

Lin Ou, Chairman of Jiangnan Shipyard, said: “The signing of these two additional VLAC contracts further deepens the cooperation and friendship among ADNOC L&S, Wanhua Chemical and Jiangnan Shipyard, which is a concrete embodiment of the joint practice of decarbonizing industrial process by all parties, and injects new impetus into the future energy transition. CSSC Jiangnan Shipyard will take the Middle East Representative Office as a new starting point to strengthen cooperation with oil and gas companies, shipping companies and other related enterprises in Middle East countries, while paying attention to the market demands for energy transportation and marine equipment, and continuously innovating and improving across multiple fields. "

Kou Guangwu, President & CEO of Wanhua Chemical Group, 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. We value highly the strategic partnership with ADNOC L&S and Jiangnan Shipyard, and these new shipbuilding orders demonstrate our intention to take our relationship to another level.”