ADNOC L&S: Construction of dual-fuel ethane and ammonia carriers in full swing

AW Shipping, a joint venture between ADNOC L&S and Wanhua Chemical Group, has celebrated new milestones in the construction of dual-fuel ethane and ammonia carriers, marking the next step and expanding and modernizing its fleet.

As disclosed by ADNOC L&S via social media updates, construction of the JV’s first of four very large ammonia carriers (VLACs) has begun with official steel cutting ceremony.

The VLAC fleet is designed to transport ammonia or LPG with a 93,000 cubic meters (cbm) capacity. Running on dual-fuel engines capable of operating on LPG or conventional fuels, the newbuilds are expected to reduce emissions in line with ADNOC’s net-zero ambitions by 2045.

In addition, the launch of its first of nine very large ethane carriers (VLECs) commissioned through AW Shipping was revealed.

The VLEC with a carrying capacity of 99,000 cbm is equipped with a dual-fuel engine that can use ethane or conventional fuels and innovative hull design that enhances efficiency.

These vessels were ordered by AW Shipping at China’s Jiangnan Shipbuilding under shipbuilding contracts worth around $1.9 billion in July 2024.

The contract included nine VLECs and two very large ammonia carriers VLACs and was described as the largest order of the joint venture which was established in 2020 to support a 10-year LPG supply contract between UAE and China. 

Two additional ammonia carriers were added to the order in October 2024.

VLECs, slated for delivery between 2025 and 2027, will be deployed on 20-year time charter contracts, generating revenue of $4 billion through 180 years of aggregated contract coverage.

VLACs are scheduled for delivery between 2026 and 2028.