ADNOC Logistics and Services plc (ADNOC L&S), a global energy maritime logistics company, announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded shipbuilding contracts to Jiangnan Shipyard in China, priced at approximately $1.9 billion (AED7 billion) in total.
The contract for the construction of nine Very Large Ethane Carriers (VLECs) is priced at approximately $1.4 billion (AED5.1 billion) and the contract for two Very Large Ammonia Carriers (VLACs) is priced at approximately $250 million (AED900 million), with the option for another two VLACs at the same price.
The new vessels will be among the world’s largest ethane and ammonia carriers and run on energy-efficient dual fuel engines. The VLECs will be deployed on 20 years’ time charter contracts, generating revenue of $4 billion (AED14.7 billion) through 180 years of contract coverage.
The contracts were signed in Beijing at a ceremony witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, Liao Zengtai, Wanhua Chemical Group Chairman, Wu Xiande, Fuzhou Government Mayor, Kai Hu, CSTC President, Ou Lin, Jiangnan Shipyard Chairman and Wen Gang, CSSC Chairman.
Established in 2020, AW Shipping is a strategic joint venture between ANDOC Logistics & Services, a subsidiary of Abu Dhabi National Oil Company (“ADNOC”), and Wanhua Chemical, with the aim of developing the global business of ADNOC L&S to meet the growing demand for new energy in China’s decarbonization industry , and strengthen industrial relations between the UAE and China.
Jiangnan Shipbuilding/CSTC, ADNOC L&S and Wanhua Chemical have successful cooperation cases in projects such as very large liquefied petroleum gas carriers (VLGC) and large LNG carriers. Based on the background of strategic cooperation between China and Abu Dhabi, all parties have succeeded in joining hands once again to provide new impetus to the low-carbon business in the future, in line with the new vision of green development of each party.
The 93,000m3 VLAC is a derivative of the fourth-generation VLGC high-quality vessel (Panda 93A) independently developed and designed by Jiangnan Shipbuilding. This VLAC is the largest liquid ammonia carrier in the world, not only suitable for long-distance transportation of green ammonia, but also can be fully loaded with propane, butane and other liquefied petroleum gases. The VLAC has an overall length of 230.0 meters, a beam of 36.6 meters and a depth of 22.5 meters. It adopts a new generation of low resistance line shape developed independently, which enables it to have excellent and balanced performance under full load, ballast and different specific gravity liquid cargo loading conditions.
The VLAC is equipped with a mature LPG dual-fuel main engine and an shaft generator to meet the current carbon emission requirements. Meanwhile, sufficient preparations have been made for the ammonia-fueled engine and fuel supply system under research and development, laying the foundation for the application of ammonia-powered engine at a later stage.
The 99,000m3 VLEC is the world’s largest capacity VLEC (PANDA 99E), which is independently developed and designed by Jiangnan Shipbuilding, especially its core cryogenic cargo containment system is the independently innovated and developed B-tank (BrillianceE®).
With an overall length of 230 meters, a beam of 36.6 meters and a depth of 22.5 meters, the VLEC is suitable for transporting various liquefied gases such as ethane, ethylene and LPG. With the advantages of low oil (gas) consumption, small BOR, no liquid level loading restriction, low maintenance cost, etc., this VLEC is the best choice for long-distance transportation of ethane, with remarkable economic and social benefits.
Currently, there are more than 25 VLECs in operation with different shipping companies around the world. Upon receiving the nine new vessels, AW Shipping will own one of the world’s largest fleets of VLECs.
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO 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 as we serve our customers.”