Today's Edition
BEIJING (WAM)
ADNOC Logistics and Services plc on Tuesday 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 in total.
The contract for the construction of nine Very Large Ethane Carriers (VLECs) is priced at approximately $1.4 billion and the contract for two Very Large Ammonia Carriers (VLACs) is priced at approximately $250 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 through 180 years of contract coverage.
The contracts were signed in Beijing at a ceremony witnessed by Dr. Sultan Ahmed Al Jaber, 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.
Chairman of AW Shipping and CEO of ADNOC L&S, Captain Abdulkareem Al Masabi, 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."
He added that the vessels will generate substantial revenue streams for ADNOC L&S, underscoring ADNOC's commitment to value-accretive strategic investments.
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.
President and CEO of Wanhua Chemical Group, Kou Guangwu, said, "These green and low-carbon ships will support Wanhua to reduce transportation carbon emissions and accelerate the decarbonisation objectives and is a concrete commitment from Wanhua to better deal with the climate change challenges."
Ou stated, "These newly ordered VLECs and VLACs are future-oriented green vessels developed by Jiangnan. We are committed to delivering these vessels on time and with good quality to better help ADNOC L&S achieve its transformational growth strategy and decarbonisation objectives."
