ADNOC’s JV inks $250 million contracts for two very large ammonia carriers

AW Shipping, ADNOC Logistics and Services (ADNOC L&S) joint venture with Wanhua Chemical Group, has signed contracts with China’s Jiangnan Shipyard for two very large ammonia carriers (VLACs). 

As disclosed, the shipbuilding deals, which were signed on the sideline of an opening ceremony for Jiangnan Shipyard’s first office in the Middle East, are for two additional vessels in this series. Initial contracts for two VLACs with the option for a further two units were signed by the companies in China in July 2024.

The VLACs each have a carrying capacity of 93,000 cubic meters of ammonia, making them among the largest ammonia carriers in the world, ADNOC noted.

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. The new contracts are worth contracts worth $250 million (AED918 million).

“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,” Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, 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,” Lin Ou, Chairman of Jiangnan Shipyard, stated.

“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,” Kou Guangwu, President & CEO of Wanhua Chemical Group, concluded.

Recently, ADNOC signed a general agreement with the Japan Bank for International Cooperation (JBIC) for a $3 billion green financing facility, which will support the company’s decarbonization and energy transition initiatives.