New vessels to be among the world’s largest ethane and ammonia carriers
ADNOC Logistics and Services has announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded shipbuilding contracts to Jiangnan Shipyard in China, priced at around US$ 1.9bn (AED 7bn) in total.
The contract for the construction of nine Very Large Ethane Carriers (VLECs) is priced at approximately US$ 1.4bn (AED 5.1bn) and the contract for two Very Large Ammonia Carriers (VLACs) is priced at approximately US$ 250mn (AED 900mn), 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 US$ 4bn (AED 14.7bn) through 180 years of contract coverage.
Beijing signing ceremony
The contracts were signed in Beijing at a ceremony witnessed by HE 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.
“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,” remarked Captain Abdulkareem Al Masabi, Chairman, AW Shipping and CEO, ADNOC L&S.
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.
